At the market equilibrium, when efficiency is attained, the marginal benefit ________ the marginal cost
A) is equal to
B) is greater than
C) is less than
D) has no necessary relationship with
E) is equal to the marginal deadweight loss which is equal to
A
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James offers you $1,000 today or $X in 7 years. If the interest rate is 4.5 percent, then you would prefer to take the $1,000 today if and only if
a. X < 1,045.00. b. X < 1,188.89. c. X < 1,266.67. d. X < 1,360.86.
One argument for trade restriction that focuses on new industries is that
A) trade barriers must be used to protect all domestic workers. B) tariffs imposed to aid new industries should never be removed. C) new industries are usually capable of competing with established rivals. D) new industries need to be shielded in their early stages. E) trade barriers can be used to enhance national security.
Under a fixed exchange rate system, if an appreciation in the value of a country's currency develops, the monetary authorities must intervene by ________
A) selling foreign exchange B) buying and selling the domestic currency C) raising the foreign interest rate D) buying foreign exchange
A consumer values a house at $525,000 and a producer values the same house at $485,000 . If the transaction is completed at $510,000 . the transaction will generate:
a. No surplus b. $25,000 worth of seller surplus and unknown amount of buyer surplus c. $15,000 worth of buyer surplus and $25,000 of seller surplus d. $25,000 worth of buyer surplus and unknown amount of seller surplus