If the equilibrium quantity is equal to the socially optimal quantity, one can infer that:
A. the supply curve for the activity is below the socially optimal supply curve.
B. there is a negative externality associated with this good.
C. there is no externality associated with this good.
D. there is a positive externality associated with this good.
Answer: C
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The marginal product of labor equals the change in ________ from a one-unit increase in the quantity of labor
A) total product B) average product C) total cost D) the slope of the average product curve E) the wage rate
Dan, age 19, may have trouble buying insurance at a low price because
A) the insurance company has private information that he is a risky driver. B) the insurance company has private information that his signals are valid. C) insurance companies fear that he has private information that his deductible is too high. D) insurance companies fear that he has private information that he is a risky driver.
Suppose Good Z is a normal good. Which of the following will increase the demand for Good Z?
A. an increase in the price of its complements B. an increase in the price of its substitutes C. a decrease in income D. a lower expected future relative price of Good Z
What impact should an economic slowdown have on the risk structure of interest rates?
What will be an ideal response?