At the socially optimal equilibrium, _____
a. social cost exceeds private cost
b. a market is allocatively efficient
c. the marginal private cost of a given level of output is equal to the marginal social benefit
d. the marginal private cost of a given level of output is greater than the marginal social benefit
b
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The highest and most prolonged period of unemployment in the United States over the last 125 years occurred during
A) World War II. B) the 1890s Depression. C) the 1990-1991 recession. D) the Great Depression of the 1930s.
A supply shock
a. is usually caused by a change in the money supply b. is any event that causes the aggregate supply curve to shift c. is any event caused by a change in the price level d. is usually good news for the economy e. always leads to an increase in the interest rate
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, where QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. We can see that:
A. cable TV and satellite TV are substitutes. B. cable TV and satellite TV are complements. C. satellite TV is a normal good. D. satellite TV is an inferior good.
If you knew that the vertical intercept for a straight line was 15, that the slope was -.5, and that the independent variable had a value of 8, the value of the dependent variable would be:
A. 8 B. 9 C. 10 D. 11