A good which has social costs that exceed private costs has a price
A) equal to marginal social cost.
B) that is too low.
C) that is too high.
D) that is inefficient because price exceeds marginal social cost.
Answer: B
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If economies of scale are significant, the typical firm will not reach the minimum point on its long-run average cost curve until it has produced a large fraction of industry sales
Indicate whether the statement is true or false
When comparing public and private schools, the voluntary choice of going to a private school _____
a. is a Pareto optimal move b. is a Pareto superior move c. is neither Pareto optimal nor Pareto superior d. cannot be evaluated according to the Pareto criteria
Which of the following is most likely to represent causality rather than association?
a. In years that fashion dictates wider lapels on men's jackets, the stock market grows by at least 5 percent. b. Interest rates are higher in years ending with a 1 or a 6. c. Unemployment falls when the AFC champion wins the Super Bowl. d. Quantity demanded goes up when price falls because lower prices increase consumer purchasing power, ceteris paribus.
According to the short-run Phillips curve, inflation
a. and unemployment would fall if the policymakers decreased the money supply. b. would fall and unemployment would rise if policymakers decreased the money supply. c. and unemployment would fall if the policymakers increased the money supply. d. would fall and unemployment would rise if policymakers increased the money supply.