At the current level of output, the marginal social cost of tennis balls is greater than the marginal social benefit. Then
A) more than the efficient quantity of tennis balls is being produced.
B) there is excess demand for tennis balls.
C) firms producing tennis balls must be earning negative profit.
D) too few tennis balls are being produced.
A
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How can freedom of the press promote economic growth?
A) A free press can be more easily swayed to report only one side of any issue. B) A free press reduces the likelihood that judges will protect private property rights. C) A free press can act as a watchdog for corruption, increasing chances for economic growth. D) A free press does not promote economic growth.
Which of the following statements regarding the relationship between average and marginal costs is INCORRECT?
A) There is always a definite relationship between average and marginal cost. B) When marginal costs are less than average costs, the latter must fall. C) When marginal costs are greater than average costs, the latter must rise. D) There is no way for average variable costs to fall when marginal costs are falling.
A barter arrangement basically means
A. a credit deal. B. a cashless transaction. C. buying with an I.O.U. D. exchanging goods for cash.
Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run
A. the unemployment rate will be smaller than the rate before the expansionary monetary policy. B. the unemployment rate will be larger than the rate before the contractionary monetary policy. C. the unemployment rate will be the same rate as before the expansionary monetary policy. D. the unemployment rate can increase or decrease depending upon how much the LRAS will shift.