When the marginal benefit and marginal cost of sodas are equal, then
A) the production of sodas might be allocatively efficient but it is definitely production inefficient.
B) the allocatively inefficient amount of sodas is being produced.
C) more sodas should be produced to reach the allocatively efficient quantity.
D) fewer sodas should be produced to reach the allocatively efficient quantity.
E) the allocatively efficient amount of sodas is being produced.
E
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In listing both the amount and cost of Wal-Mart's 2014 sales, this Application is addressing the economic concept of
A) chain-weighted indexes. B) value added. C) real versus nominal GDP. D) GDP as a measure of welfare.
The exchange rate can be very volatile, yet the quantity of dollars traded might not change much because
A) the Fed is constantly intervening by buying and selling dollars. B) there is only limited quantity of dollars in the foreign exchange market. C) supply of dollars and the demand for dollars often change in opposite directions. D) supply of dollars and the demand for dollars often change in the same directions. E) both the demand curve for dollars and the supply curve of dollars are horizontal.
Which of the following would shift a nation’s entire production possibilities curve outward?
a. moving from less than full employment to full employment. b. developing a more efficient technology. c. more efficiently allocating productive resources already available. d. All of these.
Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below. 
What is the Nash equilibrium of this game?
A. Firm A invests, and Firm B doesn't invest. B. Firm A invests, and Firm B invests. C. Firm A doesn't invest, and Firm B doesn't invest. D. Firm A doesn't invest, and Firm B invests.