For a common resource, the marginal private cost of the resource is equal to the marginal social cost
Indicate whether the statement is true or false
FALSE
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Albert's Pretzel Baking Company used to have four workers who were each in charge of making their own pretzels from start to finish
Now, one worker mixes the dough, another shapes it, the third puts the unbaked pretzels into the oven and the fourth removes the finished product. Output has doubled. This is an example of A) neutral technical change. B) labor-saving technical change. C) an organizational innovation. D) economies of scale.
When government tries to change social norms, they:
A. might run an extensive ad campaign. B. are trying to change people's opinions about their actions. C. try to get consumers to internalize the cost or benefit they cause by their market decision. D. All of these statements are true.
The standard definition of money is
a. currency + checking account balances + saving account balances b. currency + checking account balances + travelers' checks c. currency + checking account balances + credit cards d. currency + credit cards + certificates of deposit e. currency only
In the real-business-cycle theory:
A. declines in real output cause declines in the money supply and thus aggregate demand. B. decreases in long-run aggregate supply are fully anticipated and therefore do not reduce real output. C. technology is constant. D. economic instability results from inappropriate monetary policy.