Henry wants to buy a book. The economic perspective suggests that Henry will buy the book if:
A. the book will give him utility.
B. the marginal benefit of the book is greater than its marginal cost.
C. his income is high.
D. the marginal cost of the book is greater than its marginal benefit.
Answer: B
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If the United States has a trade deficit with China, then China must have
A) a trade surplus with countries other than the United States. B) a trade surplus with the United States. C) a trade deficit with countries other than the United States. D) a trade deficit with the United States.
__________ identifies the level of Real GDP the economy produces when all economywide adjustments have taken place and there are no misperceptions on the part of workers
A) Short-run equilibrium B) Disequilibrium C) Long-run equilibrium D) Equilibrium E) none of the above
Within the AD/AS model, an increase in capital formation that permits the economy to achieve a larger output will
What will be an ideal response?
Resources are efficiently allocated when production occurs where:
A. marginal cost equals average variable cost. B. price is equal to average revenue. C. price is equal to marginal cost. D. price is equal to average variable cost.