For public goods, in general, the optimal output level is found where the marginal benefits of additional production equal marginal cost
a. True b. False
a
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Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico which subsequently drove up natural gas, gasoline, and heating oil prices
Three years later, once the refining capacity was restored, these prices came back down. The restoration of refining capacity should A) move the economy up along a stationary short-run aggregate supply curve. B) move the economy down along a stationary short-run aggregate supply curve. C) shift the short-run aggregate supply curve to the left. D) shift the short-run aggregate supply curve to the right.
Generally, the higher the level of output in an economy is the ________ will be
A) lower the unemployment rate and inflation rate B) higher the unemployment rate and inflation rate C) higher the unemployment rate and the lower inflation rate D) lower the unemployment rate and the higher inflation rate
Fresh Air is a large company that repairs residential air conditioners in many homes spread across a state. The company has 50 employees who each have their own repair van. Because the managers of Fresh Air cannot monitor every employee on every repair job, the company sends a satisfaction score card to each customer asking them how pleased they are with the service. If an employee receives a
high satisfaction score, the employee receives a bonus. The bonus policy incentives the employees to do all of the following to earn a high satisfaction score except which one? A) Offer the customers free services or free up-grades on the repairs. B) Stop and take a lunch break on the way to the repair job. C) Perform a good repair. D) Be courteous to the customer
A movement along a demand curve
a. is called a change in demand. b. is the result of a change in the price of the good. c. can be caused by many things. d. means the product is inelastic.