Refer to Figure 4-3. At the price P2, consumers are willing to buy the Q2 pounds of granola. Is this an economically efficient quantity?
A) Yes, because the price P2 shows what consumers are willing to pay for the product.
B) No, the marginal benefit of the last unit (Q2 ) exceeds the marginal cost of that last unit.
C) Yes, otherwise consumers would not buy Q2 units.
D) No, the marginal cost of the last unit (Q2 ) exceeds the marginal benefit of the last unit.
B
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Inflation tends to redistribute income from
A) savers to borrowers. B) borrowers to savers. C) homeowners to landowners. D) parents to students.
Which of the following will be considered a lagging indicator of the business cycle?
a. Money supply b. New building permits c. Unemployment duration d. Unemployment claims e. New plant and equipment orders
Which of the following is likely to be a government objective?
a) Lower unemployment b) Negative economic growth c) Very high inflation d) A recession
The economy is undergoing a recession that has reduced consumers' incomes. In the smartphone market, this will most likely lead to
A. an increase in price and a decrease in quantity. B. an increase in price and an increase in quantity. C. a decrease in price and a decrease in quantity. D. a decrease in price and an increase in quantity.