When a nation is under-allocating resources to the production of a good, then the:
A. Marginal benefit is greater than the marginal cost of the good
B. Marginal benefit is less than the marginal cost of the good
C. Marginal cost of producing the good is decreasing
D. Marginal benefit of producing the good is increasing
Answer: A
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In a certain economy, the components of aggregate spending are given by:C = 60 + 0.6(Y - T) - 1,000rI = 200 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 6 percent?
A. 825 B. 450 C. 925 D. 330
The rate of growth in real GDP minus the rate of growth of the population is the
A) rate of growth of nominal GDP. B) population growth rate. C) rate of growth of per capita real GDP. D) unemployment rate.
If marginal productivity is increasing, then total product is
A) increasing at an increasing speed. B) increasing at a constant speed. C) increasing at a decreasing speed. D) decreasing at an increasing speed.
Savings deposits are included in
a. M1 but not M2. b. M2 but not M1. c. M1 and M2. d. neither M1 nor M2.