Overproduction results in
A) external costs.
B) external benefits.
C) deadweight loss.
D) super-efficiency.
E) the marginal benefit of the last unit produced being larger than the marginal cost.
C
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Easy monetary policy and tight fiscal policy lead to
A) high real interest rates. B) low real interest rates. C) roughly unchanged real interest rates. D) roughly unchanged real interest rates only when Ricardian equivalence holds; otherwise, low real interest rates.
Elijah has just eaten his second popsicle. Using the concept of marginal utility, we can say:
A. the utility he will gain from his third will reduce his total utility. B. the utility he will gain from his third will not reduce his total utility. C. the utility he will gain from his third will be less than that of his second but will increase his total utility. D. the utility he will gain from his third will be less than that of his second and may reduce his total utility.
Which of the following products are not included in current U.S. GDP?
a. a Washington apple b. a Ford Mustang produced last year and sold this year c. a physical examination at a California health clinic d. All of the above are included in current U.S. GDP.