Net total benefits of an activity are maximized when marginal benefits and marginal costs are equal
Indicate whether the statement is true or false
True
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If the ATC curve has a positive slope, then the MC curve must be
A) horizontal. B) vertical. C) above the ATC curve. D) below the ATC curve.
When the social costs of producing or consuming a good exceed the private costs, _____
a. a positive externality exists b. an inefficiently high quantity of the good will be produced and consumed, from the society's point of view c. the direct consumers of the good will bear the external costs d. the individuals involved in the production of the good do not bear the private costs e. the quantity of the good produced will be less than the socially efficient level
If autonomous consumption decreases, which of the following is the most likely effect in the short run?
a. a decrease in output, an increase in money demand, and an increase in the interest rate b. an increase in output, a decrease in money demand, and a decrease in the interest rate c. a decrease in output, a decrease in money demand, and a decrease in the interest rate d. an increase in output, an increase in money demand, and a decrease in the interest rate e. an increase in output, an increase in money demand, and an increase in the interest rate
Adam Smith identified all of the following as factors contributing to a nation's economic growth, except
a. size of the labor force b. degree of labor specialization (or division of labor) c. size of the capital stock d. level of technology e. the level of government spending