Suppose your state government could undertake some measures that would improve the safety of highways within the state. If the goal is to use resources efficiently, how many of the measures should be undertaken?
a. all of them
b. all measures up to the point at which the marginal social benefit from safety improvements equals the marginal social cost
c. all measures for which the marginal social benefits from safety improvements are greater than zero
d. all measures for which the marginal social benefit from safety improvements is at least as great as what motorists have reported they would be willing to pay
Ans: b. all measures up to the point at which the marginal social benefit from safety improvements equals the marginal social cost
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An increase in the real interest rate in the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP
A) appreciate; increase B) appreciate; reduce C) depreciate; increase D) depreciate; reduce
Refer to the above figure. The figure gives the payoff matrix for two individuals who are being accused of robbing a bank together. If Bob confesses, what is the best strategy for Harry?
A) Confess. B) Don't confess. C) Flip a coin to decide what to do. D) There is no best strategy.
Given the following data for the economy, compute the value of GDP. Government purchases of goods and services10Consumption Expenditures70Exports5Imports12Change in inventories-7Construction of new homes and apartments15Sales of existing homes and apartments22Government payments to retirees17Business fixed investment9
A. 141 B. 56 C. 90 D. 83
Refer to the graph shown. If the market price is P4, the firm will produce:
A. Q4 and earn a profit. B. Q3 and break even. C. Q2 and incur a loss. D. Q3 and earn a profit.