The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. When the marginal social benefit of the last dozen doughnuts is equal to the marginal social cost
A) the efficient quantity is being produced and consumed.
B) 200 dozen doughnuts are produced and consumed each day.
C) an increase in production and consumption would increase efficiency.
D) Both answers A and B are correct.
D
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The length of the business cycle in any business cycle theory can vary, but the long-wave cycle (or longer wave cycle) refers to
a. war-induced business cycle theory b. the equilibrium of national income theory c. the innovation cycle theory d. interaction of the accelerator and multiplier theory e. real business cycle theory
In 2008, the Fed _____ the discount rate in order to _____ the economy.
A. increased; stimulate B. decreased; stimulate C. increased; restrain D. decreased; restrain
A lower real interest rate ________ saving and ________ consumption spending.
A. does not change; does not change B. decreases; increases C. increases; decreases D. increases; increases
The U.S. gives foreign aid primarily through:
A. the World Bank. B. USAID. C. the Peace Corps. D. UNICEF.