Even when measured accurately, GDP may be a misleading measure of economic welfare because it cannot account for
A) the value of government spending and how efficiently we produce goods and services.
B) how efficiently we produce goods and services and the value of non-market production.
C) the value of non-market production and the consequences of an unequal distribution of income.
D) the consequences of an unequal distribution of income and the value of government spending.
C
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Education has an external benefit. So to achieve the efficient level of education, an education voucher must equal the difference between the
A) marginal (private) cost and the marginal social benefit. B) marginal (private) benefit and the marginal social benefit. C) marginal social benefit and the marginal (private) cost. D) dollar price and marginal (private) cost. E) marginal (private) cost and the marginal social cost.
A firm with a fixed cost of $300 every month and variable cost of $200 every month decides to shut down. In such a situation it would lose:
A) $200 every month. B) $300 every month. C) $500 every month. D) $0 every month.
What would the Nash equilibrium be in this game?
a. Neither of the players would stop b. Both of the players would stop c. Player A stops d. Player B stops
The income effect occurs when an individual switches to another similar good when the price of the preferred good increases
a. True b. False Indicate whether the statement is true or false