The marginal social cost (MSC) curve
a. lies above the market demand curve
b. lies below the market supply curve
c. is perfectly elastic at the market price
d. is perfectly inelastic
e. indicates the total cost of production, when all costs are considered
E
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Dan missed class the day the professor covered the circular flow model. Dan asked his friend Joan to explain markets to him. Joan correctly stated that a market
A) must have many buyers and only one seller, who is willing to sell to all the buyers. B) is only a place to purchase groceries. C) requires a physical location for buyers and sellers to get together. D) must include a written contract between buyers and sellers. E) is any arrangement that brings buyers and sellers together.
The International Monetary Fund, one of the Bretton Woods Institutions,
(a) was meant to provide short-term credit. (b) was meant to provide long-term credit. (c) was meant to provide both short- and long-term credit. (d) was not meant to provide credit.
Macroeconomics deals with the analysis of all of the following questions except:
a. why do national economies grow. b. what determines a nation's savings and investments. c. how does a central bank influence inflation. d. why does a country experience recessions. e. how does Microsoft price its software packages.
A firm should use marginal analysis when making a price-output decision.
Answer the following statement true (T) or false (F)