Assuming there are no externalities, if a firm produces an output level where the benefits to consumers ________ the cost to suppliers to produce it, then price is ________ marginal cost.
A. are less than; greater than
B. equal; greater than
C. exceed; less than
D. are less than; less than
Answer: D
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In the United States, health care spending on people over age 65 is ________ on people aged 18 to 24
A) six times greater than B) twice as much as C) forty times greater than D) one third as much as
Christina Romer's criticism of the belief that business cycles had moderated since World War II depended on the fact that
A) estimates of the timing of business cycles since World War II had been inaccurate. B) misuse of historical data had caused economists to understate the size of cyclical fluctuations in the post-World War II era. C) economists had ignored the roles of the government and international trade in mitigating economic fluctuations prior to World War II. D) economists had left out important components of GDP, such as wholesale and retail distribution, transportation, and services, in their pre-World War II estimates.
The LCH theory argues that
A) over time, the saving rate of low-income people tended to rise at a faster rate than that of other income groups. B) the aggregate saving rate depended on the age distribution within the economy. C) over time, the aggregate saving rate was relatively constant. D) over time, the aggregate saving rate would increase.
Economic growth:
A. does not affect living standards at all. B. has a relatively large effect on living standards over long periods of time. C. has a relatively small effect on living standards over long periods of time. D. is the sole determinant of living standards over any time period.