The greater the magnitude of the external costs of production,
a. The larger is the deadweight loss from overproduction
b. The greater would be the optimal pollution tax.
c. The further the private market solution ignoring those costs would deviate from the socially efficient level of output.
d. All of the above are true.
d
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Money serves as a medium of exchange. This means that you can
A. increase the economic growth rate in the long run by printing more money. B. compare values across several items by looking at the prices in terms of money. C. accept money as payment for the goods and services you sell. D. hold on to money to use at a later time.
The monetary rule is the view of the:
A. Keynesians that monetary policy is most important. B. Monetarists that monetary policy is most important. C. Classical economists that monetary policy is most important. D. Monetarists that the Fed should expand the money supply at a constant rate.
The contribution to total revenues coming from the next worker hired is
A) marginal product. B) marginal revenue product. C) total product. D) total revenues.
A fall in the money wage rate shifts
A) both the SAS and LAS curves rightward. B) both the SAS and LAS curves leftward. C) the SAS curve rightward but leaves the LAS curve unchanged. D) the LAS curve rightward but leaves the SAS curve unchanged.