Individuals, firms, and nations should specialize in those activities which have the highest marginal cost
a. True
b. False
Indicate whether the statement is true or false
False
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The larger the value of the marginal propensity to save (MPS)
A) the larger is the value of the marginal propensity to consumption (MPC). B) the smaller is the value of the multiplier. C) the larger is the value of the multiplier. D) the larger is the value of autonomous consumption.
When external costs are present and the government imposes a tax equal to the marginal external cost, then
A) efficiency can be achieved. B) transaction costs will be high. C) the marginal benefit of the external cost will fall. D) property rights must have already been established.
An increase in the amount and time period for which unemployment compensation is paid will most likely
A) increase the structural rate of unemployment. B) leave the natural rate of unemployment unchanged. C) decrease the natural rate of unemployment. D) increase turnover unemployment.
Policymakers often consider trade restrictions in order to protect domestic producers from foreign competitors
a. True b. False Indicate whether the statement is true or false