Benefit-cost analysis identifies the
a. allocatively efficient level of risk
b. the level of risk at which MSB and MSC of risk reduction are equal
c. both (a) and (b)
d. none of the above
c. both (a) and (b)
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According to your textbook, a "free" good is
A) a good paid for by someone else. B) a stolen good. C) a good given away by charities. D) a good obtained without any sacrifice whatsoever.
The marginal product of labor (measured in units of output) for Relient Corp is given by MPN = A(200 - N)
where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $3 per unit and A = 2.0. What will be the demand for labor if the nominal wage is $30? A) 170 B) 185 C) 190 D) 195
Perfectly competitive markets maximize the sum of producer and consumer surplus
a. True b. False
Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, total economic surplus equals area(s)
A. A + B + C + D + E + F. B. A + B + C + E + F + J + I. C. D. D. A + B + C + D.