A reduction in consumption spending due to the lay-off of 2,000 defense-industry workers?will ultimately have a larger overall impact on real GDP due to the multiplier effect
Indicate whether the statement is true or false
true
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To achieve ________, marginal cost ________ marginal benefit
A) production efficiency; must equal B) production efficiency; must be greater than C) allocative efficiency; must be greater than D) allocation efficiency; must be less than E) allocative efficiency; must equal
In the above figure, to achieve efficiency, the government should
A) impose a tax of $2 per unit. B) impose a tax of $3 per unit. C) offer a subsidy of $2 per unit. D) offer a subsidy of $3 per unit.
Marginal profit is the profit
A. earned by a firm that is about to go out of business. B. calculated directly from the total cost curve. C. that is added by a one-unit increase in total output. D. earned for each dollar of cost increase.
When buying a car from a dealership, to get the best bargain
a. Allow the dealership to make the first offer b. Keep a cushion of bargaining space in the quoted price c. Make a take it or leave it offer d. All of the above