With each successive round of the multiplier effect, the amount of the feedback ______.
a. gets larger
b. gets smaller
c. exactly doubles
d. remains constant
b. gets smaller
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A competitive market maximizes social welfare because in a competitive market,
A) profits are zero. B) price equals marginal cost of the last unit produced. C) price equals average cost of the last unit produced. D) there is free entry and exit.
In 2017, economists working at the U.S. Department of Treasury's Office of Tax Analysis have estimated that the marginal social cost of carbon dioxide emissions was about
A) $7 per metric ton. B) $32 per metric ton. C) $49 per metric ton. D) $70 per metric ton.
Lottery winners who take the lump-sum payouts instead of payments spread out over many years:
A. believe the rate of return they could find in other financial assets is less than that implied in the extended payout. B. sacrifice free money and are making an economically irrational decision. C. prefer immediate to delayed returns. D. are only making a rational economic decision if there is rapid inflation.
The shutdown point for a perfectly competitive firm is the
A. lowest point on the marginal cost curve. B. lowest point on the AVC curve. C. point at which a firm's long-run supply curve ends. D. lowest point on the ATC curve.