At any quantity at which the demand curve lies above the supply curve,
a. economic efficiency is achieved
b. the cost of producing the last unit exceeds its value to some consumer
c. marginal cost exceeds the market price
d. the market is Pareto efficient
e. the value of the last unit to some consumer exceeds the cost of producing it
E
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Which of the following statements is TRUE?
A) consumption + saving = disposable income B) consumption + saving = personal income C) consumption - investment = disposable income D) consumption - saving = personal income
The existence of positive externalities in the consumption of a good implies that: a. the social supply curve of the good lies to the right of the private supply curve
b. the government will need to provide subsidies to ensure a socially efficient level of consumption. c. the socially efficient quantity of the good will be less than the market equilibrium quantity. d. the good generates an external cost. e. the market equilibrium price of the good will be greater than the social equilibrium price.
_______ unemployment rises and falls with the business cycle.
a. Frictional b. Systematic c. Cyclical d. Temporary