Welfare economics is concerned with individual desirability of alternative economic states.
A. True
B. False
C. Uncertain
B. False
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Economic efficiency in a competitive market is achieved when
A) producer surplus equals the total amount firms receive from consumers minus the cost of production. B) the marginal benefit equals the marginal cost from the last unit sold. C) consumers and producers are satisfied. D) economic surplus is equal to consumer surplus.
The coordination failure model is based on the possibility of increasing returns to scale
A) both at the aggregate level and at the level of the individual firm. B) at the aggregate level, but not at the level of the individual firm. C) at the level of the individual firm, but not at the aggregate level. D) in future periods, but not in the current period.
The short-run effects of government's financial rescue program and fiscal stimulus package helped the economy increase aggregate demand curing the Great Recession
a. True b. False Indicate whether the statement is true or false
Which of the following most accurately states the economic significance of exchange?
a. Physical goods have value because they exist; exchange can neither increase nor decrease their value. b. Production of physical goods creates value; exchange merely redistributes this value. c. Exchange creates value by moving goods from parties who value them less to parties who value them more. d. Exchange reduces value since it consumes resources without adding to the physical supply of goods.