Suppose a new government policy will generate $5,000 of benefits for local businesses and $3,000 of costs. This policy can best be described as
A. inefficient.
B. Pareto efficient.
C. equitable.
D. potentially efficient.
Answer: D
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Provide two examples of a government barrier to entry
What will be an ideal response?
A movement upward and to the left along the money demand curve is caused by: a. an increase in the interest rate
b. a decrease in the interest rate. c. a decrease in real GDP. d. an increase in real GDP. e. an increase in the average price level.
Which situation is consistent with the law of diminishing marginal utility?
A. The more pizza Joe eats, the more he enjoys an additional slice B. The more pizza Joe eats, the less he enjoys an additional slice C. Joe's marginal utility from eating pizza becomes positive after eating three slices D. Joe's marginal utility from eating pizza reaches a maximum when total utility is zero