________ is the condition that exists when there is no way resources can be reallocated to increase the production of one good without decreasing the production of another
a. Economic growth
b. Allocative inefficiency
c. Inefficiency
d. Efficiency
d
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When government expenditures are greater than tax revenues
A) there will be budget surplus. B) the public debt will be reduced. C) there will be budget deficit. D) automatic stabilizers do not kick in.
Incentives matter and different groups of producers, consumers and politicians will support those policies that promise to advance those projects most advantageous to them. Which statement about opposition to or support for U.S
tariff policy during the antebellum period is correct? (a) "Producers in the South objected to tariffs placed on imported goods. They needed them at relatively low prices for their own production." (b) Plantation owners supported a high tariff as protection against cheap cotton imports. (c) Politicians wanted to protect jobs abroad as well as in the U.S. Therefore, they did not support U.S. tariff policies. (d) All of the above are correct.
The law of diminishing return does not apply to a firm in the long run because in this phase:
a. all the factors of production are fixed. b. there are no fixed factors of production. c. there are some fixed and some variable factors of production. d. the producer is required to produce a fixed level of output. e. the producer can change the level of output only by changing the variable factors, fixed factors remaining unchanged.
Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers the firm produces 90 units of output. Fixed costs of production are $6 and the variable cost per unit of labor is $10 . The marginal product of the seventh unit of labor is 4 . Given this information, what is the marginal cost of production when the firm hires the 7th
worker? a. $1.50 b. $2.50 c. $5 d. $10