Monetary policy primarily influences the economy through changes in:
A. spending by the Fed.
B. the discount rate.
C. the interest rate.
D. spending by government.
Answer: C
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The efficient level of paper production will occur where the
A) marginal private benefit from consuming paper is equal to the marginal social cost of production. B) marginal social benefit from consuming paper is equal to the marginal social cost of production. C) production of paper no longer produces negative externalities. D) economically efficient level of the output of paper is equal to the economically efficient level of inputs.
For products like parking lots and hotels, costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints. Therefore,
a. If SRMR>SRMC at capacity, then the firms should price to fill capacity
b. If SRMR
Marginal utility is the change in
a. total utility when an extra unit of output is produced. b. total utility when an extra unit of output is consumed. c. marginal utility when an extra unit of output is produced. d. average utility when an extra unit of output is consumed.
Which of the following is an example of an efficiency wage?
a. an addition the government makes to some workers' wages in order to reduce poverty b. an equilibrium wage paid to workers who work part time and so are exempt from the minimum wage c. paying higher wages to workers doing dangerous tasks d. an above equilibrium wage paid to workers to reduce shirking