If, in a competitive market, marginal benefit is greater than marginal cost
A) the quantity sold is less than the equilibrium quantity.
B) the net benefit to consumers from participating in the market is greater than the net benefit to producers.
C) the government must force producers to lower price in order to achieve economic efficiency.
D) the quantity sold is greater than the equilibrium quantity.
A
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Assuming that there are NO income taxes, if both autonomous taxes, and government expenditures were to rise by $100 million, we would expect equilibrium GDP to
A) rise by $100 million. B) rise, but by a multiple of $100 million. C) rise by less than $100 million. D) remain unaffected because leakages have changed by the same amount.
If John's marginal benefit derived from the consumption of another candy bar is greater than the price of the candy bar:
a. John will not purchase any more candy bars. b. John will increase his total satisfaction by purchasing the candy bar. c. the opportunity cost of the candy bar is lower than the price. d. John will decrease his total utility if he purchases the candy bar.
Conditions that can throw the market off of perfect equilibrium:
What will be an ideal response?
The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. If the United Kingdom and the rest of the world begin to trade with each other, the international price of umbrellas will lie between ________ and ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67
A. 1/3 of a bushel of corn per umbrella; three bushels of corn per umbrella. B. 1/2 of a bushel of corn per umbrella; 3/2 bushels of corn per umbrella. C. 2/3 of a bushel of corn per umbrella; 3/2 bushels of corn per umbrella. D. 2/3 of a bushel of corn per umbrella; two bushels of corn per umbrella.