At the current level of output, the marginal social benefit of pizza exceeds the marginal social cost of pizza. Compared to the allocatively efficient quantity, we are producing too ________ pizza and too ________ of other goods
A) much; little
B) much; much
C) little; little
D) little; much
D
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A market
A) always involves the personal exchange of goods for money. B) allows interactions between consumers and firms. C) always takes place at a physical location. D) has no influence on prices.
Price floors and price ceilings
A) always reduce total surplus. B) reduce consumer surplus and increase producer surplus. C) reduce producer surplus and increase consumer surplus. D) Not enough information to determine.
The recessionary gap is the
a. amount of unemployment compensation required during a recession. b. budget deficit encountered during a recession. c. amount of government spending needed to end a recession. d. distance between the equilibrium level of output and the full employment level of output.
If (T ? G) = (X ? IM), then (S ? I)
a. is greater than zero. b. is zero. c. is less than zero. d. cannot be calculated.