The marginal social cost of production is the
A) marginal private cost plus the marginal external cost.
B) same as the marginal cost of any externality.
C) total cost of any externality.
D) marginal private cost minus the marginal external cost.
A
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Refer to the table above. What is the marginal opportunity cost of transporting products to the market if the firm decides to choose factory Far over factory Very Far?
A) -$50 B) -$100 C) $50 D) $150
Figure 32-3
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Figure 32-3 shows the impact of deficit spending and the corresponding economic expansion on the demand curve for money. If the Federal Reserve does not want interest rates to rise, it will
A. shift the money supply curve to the right by monetizing the deficit. B. shift the money supply curve to the left by open-market sales of government securities. C. maintain the current targets for both M1 and M2 money stocks. D. engage in contractionary monetary policy, such as increases in the discount rate.
Consumers buy less of a good as its price increases because
a. production costs have risen. b. substitute goods are now relatively cheaper. c. the income of consumers has effectively risen. d. the higher price will make the good more valuable to each consumer.
As the interest rate increases, ceteris paribus, the trade-off between present and future consumption
A. Encourages less saving. B. Makes it more appealing to sacrifice current consumption. C. Is not affected. D. Makes it less appealing to sacrifice present consumption.