Marginal benefit equals the
A) benefit that a person receives from consuming another unit of a good.
B) additional efficiency from producing another unit of a good.
C) increase in profit from producing another unit of a good.
D) cost of producing another unit of a good.
E) total benefit from consuming all the units of the good or service.
A
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Refer to Table 19-2. Suppose that a simple economy produces only four goods and services: shoes, DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households. Using the information in the above table, nominal GDP for this simple economy equals
A) $7,400. B) $6,400. C) $5,800. D) 2,440 units.
In the real world, the K/Y ratio
A) is much higher in rich countries than in poor countries. B) is much lower in rich countries than in poor countries. C) is roughly equal across rich and poor countries. D) cannot be properly compared except between countries of similar income levels.
If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees, we would expect the:
A. labor-supply curve in that market to shift left. B. labor-demand curve in that market to shift left. C. labor-supply curve in that market to shift right. D. labor-demand curve in that market to shift right.
The investment expenditure component of aggregate demand is also known as:
a. money spent in the stock market. b. spending to repair existing capital goods. c. spending used to enhance human capital. d. spending on new capital goods.