Private benefits are those benefits that accrue:
A. indirectly to the decision maker of a market exchange.
B. directly to the decision maker of a market exchange.
C. without compensation to someone other than the person who caused them.
D. to third parties without direct government intervention.
B. directly to the decision maker of a market exchange.
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The figure above shows the demand curve, marginal revenue curve, and marginal cost curve. The amount of consumer surplus when the market has a monopoly producer is
A) ace. B) abf. C) bcd. D) bcef. E) acd.
Which of the following is an underlying assumption of the aggregate expenditure model?
a. Everyone shares equally in profits when income exceeds the cost of producing goods and services. b. The economy does better when income exceeds expenditure. c. Equilibrium is a hypothetical state that can never be reached. d. If there were no output in the economy, then there would be no income.
If the slope of a demand curve is constant, then we know that
A) elasticity of demand is also elastic everywhere. B) elasticity of demand is constant and elastic. C) elasticity of demand is inelastic everywhere. D) elasticity of demand varies along the demand curve.
Suppose, due to the effects of a military conflict that has ended, that a country experiences a large reduction in its capital stock. Assume no other effects of this event on the economy. Which of the following will tend to occur as the economy adjusts to this situation?
A) a relatively low growth rate for some time B) a relative high growth rate for some time C) zero growth for some time, followed by a gradually increasing growth rate D) positive growth, followed by negative growth, and then zero growth E) none of the above