If the marginal social cost exceeds the marginal social benefit for the last pair of shoes produced, then the economy is producing more than the efficient amount
Indicate whether the statement is true or false
TRUE
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An increase in the demand for musicians ________ the number of musicians employed, and ________ the wages paid to musicians.
A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases
If a project costs $600 today and returns $630 next year, the highest interest rate at which the project should still be undertaken is five percent
Indicate whether the statement is true or false
The market interest rate in Alpha is 7 percent, and the market interest rate in Beta is 10 percent; the inflation rate in Alpha is 3 percent, and inflation rate in Beta is 8 percent. Which of the following statements is true?
A. The real interest rate is higher in Alpha, but the nominal interest rate is higher in Beta. B. The real interest rate is higher in Beta, but the nominal interest rate is higher in Alpha. C. Both the real and nominal interest rates are higher in Beta. D. Both the real and nominal interest rates are higher in Alpha.
If the total expenditures of a typical family equaled $35,000 per year in 2015 and the exact same basket of goods and services cost $40,000 in the year 2017, the family's cost of living:
A. increased by 14 percent. B. increased by 12.5 percent. C. decreased by 12.5 percent. D. decreased by 14 percent.