An efficient solution to a pricing problem
A. makes both buyers and sellers better off than any other possible solution.
B. may not be the socially “fair” solution.
C. occurs when producers’ total cost of production equals consumers’ total utility from the output produced.
D. maximizes the output of the good being priced.
Answer: B
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Which of the following statements is correct?
a. Followers of the liberalism political philosophy believe that society should maximize the total of individual utilities. b. The poverty line is adjusted for regional differences in the costs of raising children. c. One advantage to the Earned Income Tax Credit (EITC) is that it benefits the working poor. d. Libertarians pursue policies to redistribute income from the rich to the poor.
As the reserve ratio goes up, the money multiplier goes:
A. up, and more money will be created. B. up, and less money will be created. C. down, and more money will be created. D. down, and less money will be created.
If firms have to account for external costs of production, then marginal social cost
A. equals marginal cost. B. is less than marginal cost. C. is zero. D. is greater than marginal cost.
To maximize profit, a ________ firm will produce where marginal revenue equals marginal cost.
A. perfectly competitive B. monopolistically competitive C. monopolistic D. All of the above are correct.