When a price fails to reflect all the costs of a product, too much of it is produced and/or consumed
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
When income increases, aggregate expenditure will rise by
a. the change in GDP b. the change in GDP minus the MPC c. the change in GDP times the MPC d. the MPC e. the change in GDP divided by the MPC
When economists say the demand for a product has decreased, they mean
a. the demand curve has shifted to the left. b. the product price has increased, and as a consequence, consumers are buying less of the product. c. consumers are now willing and able to buy more of this product at each possible price. d. the demand curve has shifted to the right.
In theory, perfect price discrimination
a. decreases the monopolist's profits. b. decreases consumer surplus. c. increases deadweight loss. d. reduces the number of consumers who purchase the monopoly's product.
The towns of Jekyll and Hyde each have a labor force of 2,000 people. In Jekyll, 500 people were unemployed for the entire year, while the rest of the labor force was employed continuously. In Hyde, every member of the labor force was unemployed for three months and was employed for nine months. The average duration of unemployment spells over the year was ________ months in Jekyll and ________ months in Hyde.
A. 3; 9 B. 12; 3 C. 3; 3 D. 12; 9