A perfect competition market has which of the following?
a. Only productive efficiency
b. Only allocative efficiency
c. Neither allocative or productive efficiency
d. Has both allocative and productive efficiency
d. Has both allocative and productive efficiency
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A ________ occurs when an economic activity has a spillover cost that does not affect those directly engaged in the activity
A) positive externality B) negative externality C) gain in producer surplus D) gain in consumer surplus
Why is the market demand curve for public goods calculated as a vertical summation of individual demand curves?
What will be an ideal response?
Labor productivity is
A) the quantity of capital one worker can produce in one day. B) the quantity of output produced in one hour by several workers. C) the quantity of output produced in one hour by one machine. D) the quantity of output produced by one worker or by one hour of work.
Net exports usually ________ when the U.S. economy is in a recession and ________ when the U.S. economy is expanding
A) increase; increase B) decrease; decrease C) decrease; increase D) increase; decrease