In the above figure, when 2000 bicycles are produced each month, we can see that
A) the marginal benefit from another bicycle is greater than the marginal cost of another bicycle.
B) more bicycles should be produced to reach the allocatively efficient level of output.
C) the economy is very efficient at the production of bicycles because the marginal benefit exceeds the marginal cost.
D) Both answers A and B are correct.
D
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Where a firm generates beneficial externalities, society would be better off if
a. the firm produced a larger output level. b. the firm reduced its output level. c. a tax was levied on the firm equal to the dollar amount of the externalities. d. price was reduced below marginal private cost.
The annual percentage increase in the purchasing power of a financial asset is called the:
A. inflation rate. B. real rate of return. C. nominal interest rate. D. real interest rate.
According to the principle of rational choice, a consumer should spend money on those goods which provide the most marginal utility per dollar.
Answer the following statement true (T) or false (F)
Bonds are
A) promises to repay loans. B) promissory notes issued by partnerships. C) promissory notes issued by proprietorships. D) shares of ownership in a corporation.