Which of the following statements best explains how the use of money in an economy increases economic efficiency?
A) Money increases economic efficiency because it is costless to produce.
B) Money increases economic efficiency because it discourages specialization.
C) Money increases economic efficiency because it decreases transactions costs.
D) Money cannot have an effect on economic efficiency.
C
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Long-run cost curves are U-shaped because
A) of economies and diseconomies of scale. B) of the law of diminishing returns. C) of the law of supply. D) of the law of demand.
A increase in net exports
a. shifts the aggregate demand schedule upward b. shifts the aggregate demand schedule downward. c. does not shift the aggregate demand schedule. d. decreases saving.
When Medicare was created, costs were to be shared between government and the insured
A. equally, on a 50-50 basis. B. with government paying 75% of the cost. C. with government paying 25% of the cost. D. with government paying 100% of the cost.
Refer to the information provided in Table 6.3 below to answer the question(s) that follow. Table 6.3Dozens of Oysters per DayTotal UtilityMarginal Utility160?2104?3134?4152?5?8Number ofBeers per DayTotal UtilityMarginal Utility140?270?394?4114?5?14Refer to Table 6.3. The marginal utility of the third dozen oysters per day is
A. 10. B. 30. C. 44. D. 134.