Marginal social cost is equal to
a. total private cost
b. marginal private cost
c. marginal external cost
d. marginal private cost plus marginal external cost
e. marginal private cost divided by marginal external cost
D
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Marginal revenue product equals the marginal physical product multiplied by the quantity demanded.
Answer the following statement true (T) or false (F)
Fiscal policy involves changes in _____
a. government spending b. the amount lent by banks c. the interest rate d. the capital markets
Ten years ago, Veronica’s country went through a recession. Many people struggled to get by. The economy has since recovered, but many people are reluctant to spend much of their income, preferring to save as much as possible in case bad economic times return. What impact will this have on economic growth?
a. It will have little impact on growth. b. It will slow economic growth. c. It will boost economic growth. d. It will slow growth in the long term but boost it in the short term.
Economic growth will
A) shift the production possibilities curve inward. B) shift the production possibilities curve outward. C) shift along the production possibilities curve toward the X-axis. D) be a movement from inside the productions possibilities curve to the curve itself.