In evaluating the degree of economic efficiency in a market, we can state that the size of the deadweight loss in a market will be smaller
A) the greater the difference between marginal cost and price.
B) the smaller the difference between marginal cost and average total cost.
C) the smaller the difference between marginal cost and price.
D) the greater the difference between marginal cost and average revenue.
Answer: C
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Income elasticity of demand measures how ____________________.
A. responsive the quantity of one good demanded to a change in the price of another good B. the consumption of various goods and services respond to change in income C. the quantity demanded responds to a change in price D. responsive the quantity supplied is to a change in price
Unexpected lower interest rates redistribute income from
A. Borrowers to lenders. B. Businesses to banks. C. Lenders to borrowers. D. Spenders to savers.
Macroeconomic information for the economy of Anchovy is given below
(a) What was the growth rate of average labor productivity in Anchovy between Year 1 and Year 2? (b) What was the inflation rate in Anchovy between Year 1 and Year 2? (c) What was the unemployment rate in Year 1? In Year 2?
Economic growth can be illustrated by an outward shift of the PPC
a. True b. False Indicate whether the statement is true or false