When does a subsidy that benefits consumers result in a more efficient allocation of a resource?
A) when the good being produced or consumed is not scarce
B) when the good being produced or consumed generates a negative externality
C) when the good being produced or consumed generates a positive externality
D) when the equilibrium price of the good is one that consumers don't like
C
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If a firm sells 5 units of output at $9 per unit and 6 units of output when price is reduced to $8, its marginal revenue from selling the sixth unit is
A) $1. B) $48. C) $45. D) $3.
Who gets scarce resources in a market economy?
a. the government b. whoever the government decides gets them c. whoever wants them d. whoever is willing and able to pay the price
Which of the following statements best characterizes the Classical view of business cycles?
A. Fluctuations in business activity are to be expected and should be accepted. B. The appropriate macroeconomic policy can eliminate fluctuations in business activity. C. Fluctuations in business activity occur in regular and predictable patterns. D. Business cycles are symptoms of underlying problems and should be addressed by macroeconomic policy.
An indifference curve is:
A. downward sloping and concave to the origin. B. downward sloping and convex to the origin. C. upward sloping and concave to the origin. D. upward sloping and convex to the origin.