By the permanent-income hypothesis, the long-run marginal propensity to consume is
A) j.
B) k.
C) kj.
D) k - j.
E) k/j
B
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To achieve ________, marginal cost ________ marginal benefit
A) production efficiency; must equal B) production efficiency; must be greater than C) allocative efficiency; must be greater than D) allocation efficiency; must be less than E) allocative efficiency; must equal
Antitrust laws may
a. enhance the ability of firms to capture profits from a concentration of market power. b. enhance the ability of firms to reduce economic losses. c. restrict the ability of firms to operate at the socially efficient level of production. d. restrict the ability of firms to merge.
Suppose you are planning to sell your house. You value your house at $200,000. If you do not hire a realtor, you will be able to sell your house to a buyer whose reservation price is $220,000. If you hire a realtor, you will be able to sell your house to a buyer whose reservation price is $250,000. Assume that the realtor's opportunity cost of negotiating the sale is $5,000. In this case, how much additional economic surplus is generated by using a realtor to sell your house?
A. $25,000. B. None, because you value the house at $200,000 no matter who buys it. C. $200,000. D. $250,000.
Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the question(s) that follow.
Figure 2.2Refer to Figure 2.2. You correctly deduce that all resources are fully employed and there are no production inefficiencies if this economy is currently operating at a point
A. either inside or along the production possibility frontier. B. inside the production possibility frontier. C. along the production possibility frontier. D. outside the production possibility frontier.