What is the marginal cost of a good?
What will be an ideal response?
The marginal cost of a good is the opportunity cost of producing one more unit of it. The key is that the marginal cost refers to the cost of one additional unit, not to the total cost of producing all the units.
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Personal dating advertisements in the newspaper are popular because they
a. increase the marginal benefit of search b. reduce the marginal cost of search c. increase the marginal cost of search d. reduce the optimal amount of search e. increase quality dispersion
If the foreign use of Australian-mined coal is harming Australia, the optimal policy for the Australian government to use is to
A. tax coal imports. B. subsidize coal exports. C. tax foreign coal producers. D. tax coal exports.
If European economies experience a period of sustained recession and the United States does not, what will happen in the United States?
A. An increase in aggregate supply B. A decrease in aggregate supply C. A decrease in aggregate demand D. An increase in aggregate demand
Public choice analysis indicates that politicians will find
a. budget deficits more attractive than budget surpluses. b. budget surpluses more attractive than budget deficits. c. budget deficits attractive during an economic boom, but surpluses attractive during a recession. d. tax increases more attractive than increases in government spending.