The Yankee Candle Company, in Hatfield, Massachusetts, makes scented candles. When strawberry-scented candles are made, townspeople enjoy the scent that covers the town. When potpourri-scented candles are made, people stay indoors to avoid the scent. We can infer that if the scented-candle markets are in equilibrium
a. neither strawberry nor potpourri scented candles will be produced
b. strawberry candles' prices are higher than the socially optimum
c. potpourri candles' prices are higher than the socially optimum
d. candle production generates only negative externalities
e. candle production technologies are inefficient
B
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Which of the following does NOT shift the U.S. aggregate demand curve?
A) an increase in GDP in Japan B) an increase in the supply of money C) a decrease in taxes D) a decrease in the price level
Consumer surplus is equal to
A) marginal benefit minus price summed over the quantity consumed. B) price minus marginal benefit summed over the quantity consumed. C) marginal benefit summed over the quantity consumed. D) price multiplied by the quantity consumed. E) marginal benefit plus price summed over the quantity consumed.
Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the value of marginal product from hiring the fourth worker?
A) $2,400 B) $840 C) $120 D) $60
Personal consumption expenditures
a. represent approximately two-thirds of GDP b. are equal to personal income minus individual taxes c. include durable good purchases but not nondurable good purchases d. do not include any intangible consumption items e. include all goods and services bought by the government