If firms have to account for external costs of production, then marginal social cost
A. equals marginal cost.
B. is less than marginal cost.
C. is zero.
D. is greater than marginal cost.
Answer: A. equals marginal cost.
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Happy Cows is a dairy farm that is currently earning $50,000 in economic profit. The managers of Happy Cows are considering adding a second dairy farm, which will generate an additional $10,000 in economic profit. It is economically sound for the managers of Happy Cows to add the second farm if, after accounting for the managerial diseconomies, the first farm's economic profits exceed ________.
A) $30,000 B) $40,000 C) $10,000 D) $20,000
The relative concept of poverty is based on income relative to the
A. poverty line. B. average income. C. lowest 10 percent of incomes. D. highest 10 percent of incomes.
A higher domestic price level lowers aggregate expenditures and, therefore, shifts the aggregate demand curve to the left
a. True b. False Indicate whether the statement is true or false
If C = $1,000 + 0.8(Y) and intended investment is $4,000 . then the equilibrium level of national income will be
a. $3,200 b. $25,000 c. $7,778 d. $13,200 e. $14,000