Which two groups of decision makers are included in the simple circular-flow diagram?
a. markets and government
b. households and government
c. firms and government
d. households and firms
d
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It is estimated that if the inflation rate is lowered from 3 percent a year to 0 percent a year, the growth rate of real GDP will rise by ________ percentage points a year
A) 2.3 B) 3.2 C) 1 to 3 D) 0.06 to 0.09 E) 0
Marginal damages
A. must always be considered in social marginal costs. B. must not be considered in social marginal costs. C. must sometimes be considered in social marginal costs. D. have nothing to do with social marginal costs.
In order to maximize profit, a firm that produces its output in two plants will allocate total output between the two plants so that
A. marginal revenue for the firm is equal to the sum of the plants' marginal costs. B. marginal cost for the firm is equal to the sum of the plants' marginal costs. C. marginal cost is equal for the two plants. D. all of the above
If those who consumed common resources were subject to a tax that was equal to the external costs that they imposed due to the negative externality created, their demand curve would shift:
A. down and they would consume more. B. down and they would consume less. C. up and they would consume less. D. up and they would consume more.