Which of the following could be called a virtue of raising prices of depletable resources?
a. It would discourage consumption and waste.
b. It would stimulate more efficient use of resources.
c. It would encourage innovation and discovery of alternatives.
d. All of the above are true.
d
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The fraction of each added dollar of disposable income that is used for consumption is called the:
a. average propensity to consumer (APC). b. autonomous consumption rate (ACR). c. marginal consumption propensity (MCP). d. marginal propensity to consume (MPC).
This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.
The marginal cost of litter removal ________ due to ________.
A. decreases; diminishing returns to inputs B. increases; increasing opportunity costs C. increases; the Coase Theorem D. decreases; gains from specialization
Figure 8.2 shows demand and costs for a monopolistically competitive firm. At the profit-maximizing output level, the firm's profit is:
A. $1,200. B. $1,050. C. $750. D. $375.
According to new growth theory,
A) growth in real GDP per capita occurs only if there are increasing returns. B) technological change is influenced by economic incentives. C) economic growth is determined by forces outside the control of the market system. D) centrally-planned economies are the most efficient.