________ involves undertaking an activity until its marginal benefits equal marginal costs
A) Market intervention B) Scarcity reduction
C) Central planning D) Marginal analysis
D
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Answer the following statement(s) true (T) or false (F)
1. Each user of a common property imposes a negative externality on its other users. 2. The producer of a public good creates a positive externality, so that such goods tend to be overproduced. 3. The tragedy of the commons is a situation where too much of an input is used by individuals, collectively making each individual worse off. 4. When people have identical tastes, an increase in the demand for a common property's use will increase the social gain it creates. 5. People use a common property up to the point where the marginal cost of using it equals the social marginal benefit received from it.
During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment
A) could have increased or decreased the natural rate of unemployment. B) decreased the natural rate of unemployment. C) increased the natural rate of unemployment. D) had no effect on the natural rate of unemployment.
Which of the following would most likely cause the demand for veggi burgers to increase?
a. A decline in the price of veggie burger. b. An increase in the price of tofu burgers, perceived as a substitute by veggie burger consumers. c. An increase in the price of burger buns. d. A technological innovation that lowers the cost of producing veggie burgers.
Changes in government spending and/or taxes as the result of legislation is called:
a. open market operations of the Federal Reserve. b. discretionary fiscal policy. c. balanced budget operations. d. discretionary monetary policy.