A firm's marginal factor cost describes
A) the increase in the firm's total revenue as one more unit of output is sold.
B) the change in total fixed cost that results from hiring one more unit of input.
C) the change in total variable cost that results from the production of an extra unit of output.
D) the change in total cost that results from using one more unit of an input.
D
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Suppose that the marginal social benefit from another unit of a public good is less than the marginal social cost of producing it. Then
A) the principle of minimum differentiation means that production should be decreased. B) the number of free riders is at its efficient amount. C) less of the product should be produced because its provision exceeds the efficient level. D) more of the product should be produced because its provision is less than the efficient level.
The economic system of which of the following countries can be treated as an example of a command economy?
a. United States b. Canada c. United Kingdom d. Cuba
An open market purchase, a decrease in the discount rate, and a decrease in the reserve requirement would shift the aggregate demand curve rightward
Indicate whether the statement is true or false
The difference between aggregate economic activity and potential output is called ________
A) the business cycle B) the output gap C) a recession D) a trough E) a co-movement