A price equal to the free market equilibrium price is efficient because the willingness to pay by someone to consume an additional unit ________ the marginal cost to someone for producing that unit.
A. exceeds
B. is less than
C. equals
D. None of these; efficiency is defined in terms of natural resources, not market equilibrium.
Answer: C
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An increase in consumption, investment, or net exports caused by a decrease in government purchases is known as
A) crowding in. B) a closed economy. C) crowding out. D) demand-side effects.
The supply of sand is perfectly inelastic and the demand curve for sand is downward sloping. Hence, if a tax on sand is imposed,
A) sand buyers pay the entire tax. B) sand sellers pay the entire tax. C) the tax is split evenly between the buyers and sellers. D) the government pays the entire tax. E) the government collects no tax revenue because the supply is perfectly inelastic.
Borrowing VCU3 from an online company cause the nation's:
a. Monetary base to fall. b. M2 money supply to rise. c. M2 money multiplier to remain the same. d. M2 money supply to fall.
When the financial crisis occurred, policy makers were more concerned about the deficit than they were about addressing the financial crisis.
Answer the following statement true (T) or false (F)