The figure above shows the market for brooms. If 400 brooms are produced,
A) consumer surplus is maximized.
B) producer surplus is maximized.
C) market failure and a deadweight loss occur.
D) marginal cost is greater than marginal benefit.
E) consumer surplus equals zero.
C
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Robert Lucas, a Nobel laureate in economics, argues that there are ________ returns to human capital
A) negative B) decreasing C) constant D) increasing
Economic Value Added helps firms to avoid the hidden-cost fallacy
a. by ignoring the opportunity costs to using a capital b. by differentiating between sunk and fixed costs c. by taking all capital costs into account including the cost of equity d. none of the above
Banks try to keep their level of excess reserves low because
a. the Fed charges a penalty for holdings of excess reserves. b. they are concerned that the money multiplier will become too large. c. they wish to maximize profits. d. bank regulators levy fines on the amount of excess reserves.
Under school voucher systems, financial support goes to
A. to the school. B. to the state. C. to the city. D. to the family.