A firm produces an output level at which price is greater than marginal cost. Explain why this is inefficient
What will be an ideal response?
It is inefficient because the value that society places on using these resources to produce this product is greater than the cost of using resources to produce the product.
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Why have poor nations invested so much money in education and health? Evaluate the soundness of these reasons
What will be an ideal response?
If the fiscal authority is focused on maintaining a balance of payments equilibrium, it is said to be pursuing
A) external balance. B) internal balance. C) payments balance. D) international peace.
If the expected return on bonds increases, all else equal, the demand for bonds increases, the price of bonds ________, and the interest rate ________
A) increases; decreases B) increases; increases C) decreases; decreases D) decreases; increases
Another term for the equilibrium price is
A) excess demand. B) nominal price. C) law of demand. D) market clearing price.