Is the marginal benefit from the concert zero? Explain your answer
What will be an ideal response?
The marginal benefit from the concert was not zero. Regardless of the price paid for the concert, Eminem's fans enjoyed the concert and there-fore enjoyed a marginal benefit from it.
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Which of the following statements best describes allocative efficiency?
a. As additional increments of resources are added to producing a good or service, the marginal benefit from those additional increments will decline. b. when it is impossible to produce more of one good (or service) without decreasing the quantity produced of another good (or service) c. when a country can produce a good at a lower cost in terms of other goods; or, when a country has a lower opportunity cost of production d. when the mix of goods being produced represents the mix that society most desires
The balance of payments and the balance of trade are
a. exactly the same thing. b. not exactly the same thing but are always equal. c. two different and unrelated things. d. two different things, but one is a part of the other.
Transfer payments are ________.
A. excluded when calculating GDP, because they do not reflect current production B. excluded when calculating GDP, because they only reflect inflation C. included when calculating GDP, because they are a category of investment spending D. included when calculating GDP, because they increase the spending of recipients
Why do firms spend money on costly innovation?
A. Competitive markets leave firms no choice but to innovate. B. Innovation is a low-risk activity. C. Innovation always results in higher profits for firms. D. Innovation is usually profitable because the majority of innovations reach the market place. E. Because innovation is beneficial for society and firms are motivated to act in ways that are beneficial for society.