The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social cost of producing the 200th dozen doughnuts each day?
A) $10.00 per dozen
B) $8.00 per dozen
C) $6.00 per dozen
D) $4.00 per dozen
C
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Tariff rates remained high in the U.S. throughout the postbellum period for which of the following reasons?
(a) The government needed revenues to finance its expenditures. (b) Special interest groups organized themselves to realize rents. (c) Land sales dwindled as the Western frontier closed. (d) All of the above.
The demand schedule shows that the price of a good and quantity demanded are directly related to each other
a. True b. False Indicate whether the statement is true or false
When the federal government becomes heavily involved in programs that favor well-organized business interest at the expense of others, the expected result is
a. more rapid economic growth, because programs of this type are generally productive. b. a reduction in rent seeking activities because political decision-makers will want to promote smaller, innovative firms rather than large firms that are a major source of political contributions. c. less innovation because political decision-makers will tend to favor older firms with a stronger record of providing political support rather than newer, innovative start-up firms. d. a decline in the competitiveness of elections, because politicians will find it more difficult to raise campaign contributions.
Other things equal, if a full-employment economy reallocated a substantial quantity of its resources to capital goods, we would expect:
A. labor productivity to rise. B. present consumption to rise. C. a lower rate of growth of real GDP. D. future consumption to fall.