Long-term growth in production in an economy can be partially explained by:
a. improvements in the rules of the game that facilitate production and exchange.
b. the peaks and troughs of the business cycle or economic fluctuations
c. trade surpluses that lead to accumulations of precious metals.
d. federal government budget deficits.
e. a gradual but consistent increase in the price level.
a
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Which of the following is true?
A) MSC = MC + Marginal external cost B) MC = Marginal external cost - MSC C) MC = Marginal external benefit + MSC D) MSC = Marginal external cost + marginal external benefit E) MSC = Marginal external cost - marginal external benefit
The behavior of firms is best understood by focusing on
a. money profit b. economic profit c. accounting profit d. economic profit minus implicit costs e. money profit minus explicit costs
In the United States cartels are:
A. quite common in industries that produce nondurable goods. B. in violation of the antitrust laws. C. concentrated in monopolistically competitive industries. D. encouraged by government policy so firms can achieve economies of scale.
Scarcity results from the fact that
A) people's wants exceed the resources available to satisfy them. B) not all goals are desirable. C) we cannot answer the major economic questions. D) choices made in self-interest are not always in the social interest. E) the population keeps growing.