The existence of marginal external benefits for a product like higher education creates a deadweight loss for society because, without government intervention, ________ would be consumed and ________ would be produced
A) more than the efficient amount; more than the efficient amount
B) more than the efficient amount; less than the efficient amount
C) less than the efficient amount; more than the efficient amount
D) less than the efficient amount; less than the efficient amount
E) the efficient amount; the efficient amount
D
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Referring to Figure 19.2, a depreciation of the dollar is represented by a movement from point
A) a to c. B) c to a. C) c to d. D) b to a.
Government debt increases the interest rate and private investment
Indicate whether the statement is true or false
Economists believe that entrepreneurs, whether they can articulate their behavior or not, always think about ________, which explains their MC = MR profit-maximizing activity
a. minimizing ATC b. maximizing revenue c. the consequences of producing the next unit d. maximizing output e. doing better than breaking even
In economic theorizing, common sense will always lead to the correct answer
a. True b. False Indicate whether the statement is true or false