Assume that the price overestimates the value that society places on the flu vaccine. If firms produce where P = MC, firms will be producing ________ the socially efficient amount of flu vaccine.
A. less than
B. more than
C. exactly
D. sometimes more than and sometimes less than
Answer: B
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Refer to Figure 2-1. ________ is (are) technically efficient
A) Point A B) Point B C) Point C D) Points B and C
Nonactivists believe that ________
A) there is a very rapid self-correcting mechanism since prices and wages are very flexible B) lags to policy implementation are so long that even the "correct" policies may lead to undesirable consequences C) policy interventions should take place less frequently than what Keynesians advocate D) all of the above E) none of the above
In 1936, John Maynard Keynes published a book, The General Theory, which attempted to explain
a. stagflation. b. the classical dichotomy. c. short-run economic fluctuations. d. how changes in the money supply had created the Great Depression.
Our current account balance in 2009 was a
A. surplus of about $220 billion. B. surplus of about $420 billion. C. deficit of about $220 billion. D. deficit of about $420 billion.