In the figure above, when 4,000 pizzas are produced, the marginal benefit of a pizza ________ its marginal cost, which means ________ pizza is being produced
A) exceeds; too little
B) exceeds; too much
C) is below; too much
D) is below; too little
E) equals; the efficient quantity of
E
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Sustained increases in the standard of living depend on
A) increases in the population. B) increases in the quantity of labor. C) increases in labor productivity. D) decreases in labor productivity. E) increases in aggregate hours.
The General Theory of John Maynard Keynes exerted a major impact on macroeconomics during the 20th century primarily because
a. it provided the only logically consistent view of what caused the Great Depression. b. it provided a reasonable explanation of what went wrong during the Great Depression and what could be done to prevent it from happening again. c. it explained how gross domestic product could be measured and why this was important. d. it derived the conditions necessary for maximum efficiency of resource use and explained how these conditions could be achieved through central planning.
Refer to Figure 2.3. At a price of $10 per CD, there would be:
A. excess supply of 70 thousand CDs.
B. excess demand of 50 thousand CDs.
C. excess supply of 50 thousand CDs.
D. excess demand of 70 thousand CDs.
Under free trade, a large country produces one million leather bags per year and imports another two million bags per year at the world price of $60 per bag. Assume the country imposes a specific tariff of $5 per bag. As a result, the per-unit price of leather bags decreases to $58 in the international market and the import of leather bags drops to 1.6 million. The domestic production, on the other hand, increases to 1.1 million. Calculate the tariff revenue collected by the domestic government.
A. $8 million B. $10 million C. $4 million D. $13.5 million