If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and consumer surplus plus producer surplus is maximized, then
A) maximum deadweight loss occurs. B) profits are maximized.
C) costs are minimized. D) economic efficiency is achieved.
D
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The cyclical deficit is the portion of the deficit
A) that would exist if the economy were at full employment. B) that does not add to the national debt. C) that is the result of nondiscretionary federal spending. D) created by fluctuations in real GDP. E) that is the result of discretionary federal spending.
The marginal productivity standard of income distribution:
a. provided maximum incentive for productivity b. requires government redistribution of income c. is based on the theory that a dollar income provided greater utility to a poor person than a rich person d. all of the above
Explain the impact for producers, consumers, and the government of a tariff imposed on imported lumber.
What will be an ideal response?
Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table.Number of Mugs Per DayTotal Cost Per Day0$101$142$193$254$325$406$49 If Chris's fixed costs decrease, then in the short run, his profit-maximizing level of output will:
A. only increase if he can earn a positive profit. B. increase. C. decrease. D. not change.