The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another
a. True
b. False
Indicate whether the statement is true or false
True
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In the above table, when 200 brownies are produced
A) marginal social benefit is greater than marginal social cost, and resource use is efficient. B) marginal social benefit is greater than marginal social cost, and there is a deadweight loss. C) marginal social benefit equals marginal social cost, and resource use is efficient. D) marginal social benefit is less than marginal social cost, and there is a deadweight loss.
If this is a closed economy, the number of TVs exchanged will be ________.
A. 120,000 B. 60,000 C. 30,000 D. 90,000
Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost:
A. firm 2 will lose market share. B. firm 1 will enjoy higher profits. C. firm 1 will increase its output. D. None of the statements is correct.
Define the following terms and explain their importance to the study of macroeconomics. a. the relationship between interest rates and velocity b. lags in stabilization policy c. rules versus discretion
What will be an ideal response?