Efficiency in the provision of a public good is achieved when its
A) total social benefit equals its total social cost.
B) average social benefit equals its average social cost.
C) marginal social benefit equals its marginal social cost.
D) marginal social benefit equals zero.
C
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An increase in the price level will
A) move the economy down along a stationary aggregate demand curve. B) move the economy up along a stationary aggregate demand curve. C) shift the aggregate demand curve to the left. D) shift the aggregate demand curve to the right.
If nominal GDP in 2011 is greater than nominal GDP in 2010, the economy's real output of goods and services must have risen
a. True b. False Indicate whether the statement is true or false
When a firm exits a competitive price-searcher market, the individual demand curves faced by all remaining firms in that market will
a. shift in a direction that is unpredictable without further information. b. shift to the right. c. shift to the left. d. remain unchanged. It is the supply curve that will shift.
Which of the following is NOT a cause for real wage rigidity?
A. minimum-wage laws B. unemployment insurance C. union power D. efficiency wages