The difference between the marginal social cost and the marginal private cost equals the
A) cost of producing an additional unit of a good.
B) marginal external benefit.
C) marginal external cost.
D) marginal private benefit.
C
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To be considered officially unemployed, a person must be at least 16 years old
A) and be a discouraged worker. B) and not working. C) and not in school and not working. D) and not working but is actively seeking employment.
In January, 2,500 quarts of ice cream are sold in Boston at $2.50 a quart. In February, 3,000 quarts are sold at $2.00 a quart. This change in quantity sold and price may have been caused by
A. a reduction in wages in the Boston area. B. the introduction of labor-saving automated ice cream-packing machinery. C. the release of a medical study showing that ice cream consumption improves mental health. D. the decision by Boston ice cream sellers to eliminate discount coupons.
Determining “what ought to be” in the economy is considered
a. positive economics. b. normative economics. c. distributive economics. d. mesoeconomics.
In order to construct a more complete picture of the economic burden of government across income classes, economists usually
a. include tax payments as well as transfer payments received. b. focus only on the tax payments of wealthy tax payers. c. limit their analysis to taxes based on the ability-to-pay principle. d. focus their analysis on issues of tax efficiency.