The marginal social cost of production is:
A. the sum of the total cost to the producer and the total external cost.
B. the sum of the marginal cost to the producer and the total external cost.
C. the sum of the total cost to the producer and the marginal external cost.
D. the sum of the marginal cost to the producer and the marginal external cost.
D. the sum of the marginal cost to the producer and the marginal external cost.
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According to the interest-rate-based monetary policy transmission mechanism, a decrease in the money supply will
A) lead to an increase in investment spending and a decrease in real GDP which is greater than the increase in investment spending. B) lead to a decrease in investment spending and an increase in real GDP that is equal to the decrease in investment spending. C) lead to a decrease in investment spending and a decrease in real GDP which is greater than the decrease in investment spending. D) lead to an increase in investment spending and a decrease in real GDP that is equal to the increase in investment spending.
Entry of new firms in an increasing-cost industry leads to an upward shift of the LRAC curve.
Answer the following statement true (T) or false (F)
Refer to Figure 34.4. There is a welfare-induced disincentive to work starting at
A. 750 hours. B. 17,50 hours. C. 500 hours. D. 1250 hours.
Refer to the information above. By accelerator theory, net investment will remain above zero in the long run only so long as
A) expected sales are greater than v* times the capital stock. B) replacement investment is above zero. C) expected sales keep rising. D) expected sales do not fall. E) actual sales fall below expected sales.