The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. What is the marginal social benefit from the 100th pound of chocolate each day?
A) $1.50 per pound
B) $1.00 per pound
C) $0.50 per pound
D) None of the above answers is correct.
A
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
The piecemeal actions of Parliament to curtail the various colonial manufacturing activities
a. stemmed from a deep-seated fear of American competition. b. were punitive, in response to colonial smuggling and price dumping. c. were a roundabout attempt to undermine the colonial shipbuilding industry. d. were largely taken to protect vested, well-lobbied interests.
The aggregate expenditures function (AE) is the total spending in an economy at a given: a. rate of interest
b. level of disposable income. c. level of autonomous investment. d. price level.
Answer the following statement(s) true (T) or false (F)
1. Consumers use bounded rationality to take shortcuts in mental processing. 2. Rules of thumb tend to make people less confident. 3. Framing occurs when consumers treat money differently depending on where they got it. 4. Anchoring occurs when people rely heavily on the first piece of information offered when making a purchase. 5. The traditional consumer choice model predicts and explains most consumer behavior quite well most of the time.