The social cost of a transaction is _____
a. the sum of fixed and variable costs
b. the difference between the total cost and opportunity cost
c. the sum of private and external costs
d. the difference between the private and external costs
e. the sum of fixed costs and opportunity costs
c
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Which of the following schools of thought criticized the Fed's policy of targeting interest rates?
a. The new Keynesians b. The Keynesians c. The monetarists d. The classical economists e. The new classical economists
Market and socialist economies can be contrasted in all the following ways except that:
A. under a market economy government plays no role in the market; under socialism, government planning boards make most major economic decisions. B. under a market economy labor is allocated by individual choice based on wage levels; under traditional socialism it is allocated by a government planning board. C. under a market economy self-interest is the primary motive of economic activity; under socialism, individuals are supposed to act from considerations of the general good. D. under a market economy the distribution of income is to each according to his ability, effort, and inheritance; under ideal socialism the distribution of income is to each according to his need.
Which of the following causes a movement along a supply curve?
A. a change in technology B. a change in resource costs C. a change in the price D. all of these
A perfectly elastic long-run supply curve indicates
A. an increasing-cost industry. B. a decreasing-cost industry. C. a constant-cost industry. D. that some input prices change as firms enter and exit the industry.