Within the framework of economics, optimization means providing a good or service until
a. total benefits are maximized.
b. total benefits and total costs are equal.
c. marginal benefits exceed marginal costs by the greatest amount possible.
d. marginal benefits and marginal costs are equal.
e. as long as total benefits are greater than total costs, any amount may be optimal under the right circumstances.
D
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In the long run, a perfectly competitive firm can
A) only make an economic profit. B) only make zero economic profit. C) only incur an economic loss. D) make an economic profit, make zero economic profit, or incur an economic loss.
Which of the following is an application of the Hoteling model of monopolistic competition?
A. Stores of similar types tend to cluster B. Politicians tend toward positions more extreme than what they actually believe C. Efficiency requires that stores are spread equidistant from each other in a given space D. As space increases between firms, each firm produces less
When governments subsidize retraining programs for unemployed workers to learn new skills, they are trying to minimize the effects of which kind of unemployment?
A. Seasonal B. Structural C. Frictional D. Real-wage
Deficits are a burden on future generations if they
A) cause higher rates of inflation to occur. B) are not used for government capital formation. C) cause national saving to fall. D) are always a primary government deficit.