The overallocation of resources by society to a product means that the:
A. workers are not being paid adequate wages and salaries.
B. marginal benefit is greater than the marginal cost.
C. entrepreneurs are making too much profit in the economy.
D. marginal cost is greater than the marginal benefit.
Answer: D
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Refer to Figure 26-7. Suppose the economy is in a recession and the Fed pursues an expansionary monetary policy. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) C to B. B) A to B. C) A to E. D) C to D. E) B to C.
A study of the market for optometrists' services in the 1960s showed that
a. all states in the United States prohibited advertising by optometrists. b. almost all professional optometrists opposed legal restrictions on their rights to advertise. c. the average price of eyeglasses would decrease if the legal restrictions on advertising by optometrists were removed. d. advertising on eyeglasses limited competition among optometrists.
When operating at the profit-maximizing/loss-minimizing level of output, total revenue minus total cost equals
A. $350.
B. $240.
C. $225.
D. -$240.
In a mixed open economy, which of the following all affect the equilibrium GDP in the same direction?
A. C a , I g , S a , and M. B. S a , T, and M. C. I g , T, and C a . D. S a , I g , and X.