A good that has external benefits associated with its production will be
A) produced at the optimal level.
B) underproduced.
C) overproduced.
D) not produced.
Answer: B
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Fractional reserve banking occurs when: a. a bank has reserves that exceed its deposits
b. a bank has reserves that are equal to its deposits. c. a bank has reserves that are less than its deposits. d. some depositors lose their deposits through poor bank management. e. some lenders fail to repay their loans.
All of the following are true except
A. gross investment minus depreciation equals net investment. B. Karl Marx said that capital is produced by the capitalist. C. inventory investment is less stable than investment in plant and equipment. D. capital can be acquired by borrowing, working more or consuming less.
Opportunity-cost theory implies that if the public lost most of its interest in spectator sports,
What will be an ideal response?
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. The market wage is initially W1 and the firm is initially at Point B. Labor supply increases from S1 to S0. The firm?s MRPL curve will shift from MRPL at K2 to MRPL at K1 because
A. the firm is no longer maximizing profits. B. the factor substitution effect will cause the firm to substitute capital for the lower-priced labor. C. the output effect led to ann increase in the demand for capital, which in turn increased the productivity of labor. D. the supply of labor increased and therefore the productivity of labor increased.