In economics, cost is measured as ________, and benefit is measured as ________
A) what you are willing to pay on the margin; what the government pays you when you are unemployed or retired
B) the amount of money that you pay on the margin; the amount of money that you receive on the margin
C) what you must give up to get something; what you are willing to give up to get it
D) the amount of money that you pay for something; the amount of money that someone else is willing to pay you
E) what you are willing to give up to get it; what you must give up to get something
C
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List the five approaches used to solve the problem of externalities
What will be an ideal response?
Which of the following is a characteristic of a firm in a perfectly competitive market?
A) The firm must lower its price in order to increase quantity demanded. B) The firm cannot make a profit in the short run because it is too small a part of the total market. C) The firm can make a profit in the long run but not in the short run. D) The firm can sell as much as it wants without having to lower its price.
The marginal rate of substitution measures
A) the willingness of a consumer to exchange a good with another consumer. B) the willingness of a consumer to pay the form for a good. C) the value in dollars of the last unit of good obtained by the consumer. D) the rate at which a consumer is willing to exchange one good for another.
If foreign income falls, there will be _____
a. an increase in foreign spending b. a rise in domestic aggregate demand c. no change in either domestic net exports or aggregate demand d. a decline in the domestic price level e. a decrease in domestic aggregate demand