In a one-period economic model, the government budget constraint requires that government spending
A) = taxes + transfers.
B) = taxes + borrowing.
C) > 0.
D) = taxes.
D
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Refer to Figure 14.1. Other things equal, an increase in transfer payments is best represented as a movement from
A) point A to point B. B) point B to point A. C) point C to point A. D) point B to point C.
Cost efficiency is achieved when the MPP of a worker relative to the worker's wage is the same for all workers.
Answer the following statement true (T) or false (F)
A firm should increase production if its current level of production is characterized by MR >MC.
a. true b. false
?The graph shows the market for wheat in an economy. The equilibrium price and quantity of wheat bought and sold in the domestic market in the absence of international trade are P2 and Q2, respectively. If the world price of wheat is P3, the net domestic gain from trade is shown by area _____ in the graph.
a. ?C b. ?E c. ?B d. ?A e. ?D