Refer to the diagram. Suppose that point y represents the optimal combination of civilian goods and defense goods. We can conclude that at y the marginal benefit of defense goods:
A. exceeds the marginal cost of defense goods.
B. equals the marginal cost of defense goods.
C. is zero.
D. is negative.
B. equals the marginal cost of defense goods.
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From an economics standpoint, the Articles of Confederation did not provide for
(a) levying taxes to support a central government. (b) regulating interstate commerce. (c) enforcing laws, because no federal judiciary was authorized. (d) any of the provisions mentioned above.
The current international monetary system is
a. a flexible exchange rate system b. a fixed exchange rate system c. a system combining fixed and flexible exchange rates d. a gold standard e. a gold exchange rate system
The reason why inflation reduces the value of the multiplier is that part of the change in demand is
A. absorbed by price changes. B. saved rather than spent. C. matched by changes in supply. D. matched by changes in income.
Why is a monopoly inefficient?
What will be an ideal response?