If a firm is not forced to take account of a negative externality it creates, it will produce the quantity at which
a. the marginal cost of production equals the marginal private benefit
b. the marginal cost of production equals the marginal social benefit
c. the marginal social cost of production the equals marginal private benefit
d. the marginal social cost of production equals the marginal social benefit
e. price equals marginal social benefit
A
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The largest component of GDP in the US is typically:
a. government purchases. b. social securtity. c. consumption. d. investment. e. net exports.
The regional Federal Reserve bank presidents are:
A. selected by the Federal Reserve Board of Directors. B. allowed to serve no more than two consecutive four-year terms. C. are responsible for overseeing the day-to-day actions of the regional banks. D. responsible for ensuring that money supply can adequately meet the demand for money.
Suppose that during the Great Depression long-run aggregate supply shifted left. To be consistent with what happened to the price level and output, what would have had to happen to aggregate demand?
a. It would have to have shifted left by less than aggregate supply. b. It would have to have shifted left by more than aggregate supply. c. It would have to have shifted right by less than aggregate supply. d. It would have to have shifted right by more than aggregate supply.
Which of the following is not true for a firm in perfect competition?
A) Profit equals total revenue minus total cost. B) Price equals average revenue. C) Average revenue is greater than marginal revenue. D) Marginal revenue equals the change in total revenue from selling one more unit.