When there is a positive externality
A) the marginal social benefit received by consumers is greater than the marginal private benefit.
B) the marginal private benefit received by consumers is greater than the marginal private cost.
C) the marginal private benefit received by consumers is greater than the external benefit.
D) the marginal private benefit received by consumers is greater than the marginal social benefit.
A
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Suppose when the price of shoe laces goes from $1 to $2 per pair, production increases from 95 million pairs to 105 million pairs per year. Using the mid-point method, the price elasticity of supply is:
A. 6.28 B. 66 percent C. 10.5 percent D. 0.15
Suppose Bank X is holding total cash reserves of $32,000 on deposits of $90,000 . If the reserve requirement is 15 percent, then the excess reserves held by this bank is:
a. $27,200. b. $58,000. c. $4,800. d. $13,200. e. $18,500.
Inefficient allocation of resources occurs when
a. no one can be made better off without having someone else give up something. b. it is possible to make some people better off without making others worse off. c. society is operating at a point high on the production possibilities frontier. d. society is operating at a point low on the production possibilities frontier.
The program that redistributes the most money is:
A. the Department of Housing and Urban Development's housing programs. B. Supplemental Security Income. C. the Social Security system. D. Aid to Families with Dependent Children.