A market equilibrium:
A. is never socially optimal.
B. might not maximize total economic surplus.
C. is socially optimal.
D. leaves unexploited opportunities for individuals.
Answer: B
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In the above figure, if the market is competitive and unregulated, then at the equilibrium amount of output the marginal social benefit is
A) less than the marginal cost to producers. B) greater than the marginal social cost. C) equal to the marginal cost to producers. D) equal to the marginal private benefit from consumption.
When the Treasury acquires gold or SDRs, it issues certificates to the ________, which are a claim on the gold or SDRs, and in turn is credited with deposit balances at the ________
A) Federal Reserve System; Fed B) Federal Reserve System; IMF C) International Monetary Fund; Fed D) International Monetary Fund; IMF
Refer to the above table. What does the marginal revenue product equal when 27 workers are hired a week?
A) $1040 B) $216 C) $16.25 D) $8
An increase in the excess reserves banks want to hold, together with people depositing currency into their demand deposit accounts, would: a. increase the money supply
b. decrease the money supply. c. leave the money supply unchanged. d. have an indeterminate effect on the money supply.