The optimal allocation of resources is such that:
a. the production of the two goods is equal.
b. the marginal benefit of the good is greater than the marginal cost.
c. the marginal cost of producing the good is equal to zero.
d. the marginal benefit of the good equals the marginal cost.
a. the production of the two goods is equal.
You might also like to view...
Parties who have sold a futures contract and thereby agreed to ________ (deliver) the bonds are said to have taken a ________ position
A) sell; short B) buy; short C) sell; long D) buy; long
The purchasing power parity (PPP) theory suggests the prices of identical items will equalize internationally. An illustration that supports this theory is the fact that the price of a McDonald's "Big Mac" is the same around the world
a. True b. False
The business cycle is best defined as alternating periods of increases and decreases in the level of economic activity.
Answer the following statement true (T) or false (F)
Figure 16.1A firm that generates pollution is illustrated in Figure 16.1. If the government imposes a pollution tax equal to P2 and the firm chooses abatement level A3:
A. the marginal cost of abating is greater than the marginal benefit of abating. B. the marginal benefit of abating is greater than the marginal cost of abating. C. the firm is choosing optimally. D. the firm is in violation of environmental protection laws.