The efficient level of public good provision is determined
a. where the market demand curve intersects the marginal cost curve
b. where the sum of individual valuations equals the sum of marginal costs
c. without regard to economic factors
d. where marginal revenue product equals marginal factor cost
e. at the minimum point of the average total cost curve
A
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According to the graph shown, the monopolistically competitive firm will produce:
These are the cost and revenue curves associated with a monopolistically competitive firm.
A. where MR = MC and will charge according to ATC.
B. where MR = MC and will charge according to D.
C. where D = MC and will charge according to MR.
D. where D = MC and will charge according to ATC.
When a country exports more goods and services than it imports, this is called
A. a balance of trade deficit. B. a balance of trade surplus. C. a positive terms of trade. D. a negative terms of trade.
A concern about crowding out caused by increased government borrowing is that:
A. interest rates on private borrowing fall. B. lower rates of economic growth can result from a decline in business investment spending. C. the federal government may default on its loans. D. foreign lenders find it less attractive to help finance federal deficits.
The law of demand is illustrated by a demand curve that is:
A. horizontal. B. downward-sloping. C. vertical. D. upward-sloping.