Which of the following is not correct?
a. Market power can cause markets to be inefficient.
b. When the decisions of buyers and sellers affect nonparticipants, markets may be inefficient.
c. The tools of welfare economics cannot help economists when markets are inefficient.
d. Externalities can cause markets to be inefficient.
c
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The figure above shows the relationship between the time a student spends studying and the student's GPA that semester. The slope of the relationship at point A ________ the slope at point B
A) is greater than B) is less than C) is equal to D) cannot be compared to E) can be compared but more information is needed to determine whether the slope is greater than, less than, or equal to
The learning curve suggests that an individual will
A) receive the same income throughout a career. B) gain experience and increase productivity over time. C) be subject to frequent spells of unemployment. D) have an income that falls over time.
An author who writes newspaper columns for $75 each is deciding whether to purchase a personal computer with a laser printer. She figures she'd be able to write two more columns per month than she could on her typewriter. She should
a. buy the computer if the monthly payment is less than $300 b. buy the computer regardless of its price c. not buy the computer if the monthly payment is greater than $75 d. not buy the computer regardless of the price e. buy the computer if the monthly payment is less than $150
Suppose an economy operates at a real GDP level of $855, where saving = $400; investment = $95; government spending = $365; taxes = $130; imports = $210; exports = $170 . Which of the following statements is true in the light of the given information?
a. Aggregate expenditures will fall, because total injections exceed total leakages by $110. b. Real GDP will increase, because total injections are less than $855. c. The economy will be in equilibrium, because leakages equal injections. d. Real GDP will fall, because total leakages exceed total injections by $110. e. Inventories will rise, because planned saving exceeds planned investment.