When there are economies of scale,
A) MC > AC, so cost-output elasticity is greater than AC.
B) MC < AC, so cost-output elasticity is less than AC.
C) MC < AC, so cost-output elasticity is greater than 1.
D) MC < AC, so cost-output elasticity is less than 1.
E) long-run marginal cost is declining.
D
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In a competitive market with no externalities,
A) the consumer surplus is equal to zero because of competition. B) buyers cannot control the price, so the consumer surplus is zero. C) at the equilibrium price, marginal benefit exceeds marginal cost. D) at the equilibrium price, marginal benefit equals marginal cost. E) at the equilibrium price, the total amount of consumer surplus equals the total amount of producer surplus.
Which of the following is true about the indifference curve where one commodity (such as pollution) is "bad"?
A) It has a negative slope. B) It has a positive slope. C) It is horizontal. D) It is vertical.
The benefits received principle would not work well in which of the following cases?
a. gasoline tax b. national defense c. taxing those people who use a private good d. admission fees to a national park
Which of the following scenarios best illustrates the concept of cyclical unemployment?
a. Grace loses her job because of new automated machinery. b. Sean quits his job to look for work that is more fun. c. Ellen quits looking for work because she doesn't think she can find a suitable job. d. Marian loses her job because of a recession.