Marginal cost is the
A) cost of an increase in an activity.
B) total cost of an activity.
C) cost of an activity minus the benefits of the activity.
D) cost of all forgone alternatives.
A
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Real GDP per person equals average labor productivity:
A. times one minus the unemployment rate. B. times the share of population employed. C. times the labor force participation rate. D. minus the share of population employed.
Under a balanced budget policy, a sharp decline in GDP will cause
a. no serious budget changes. b. a tax cut or an increase in expenditures. c. a tax increase or expenditure cut. d. tax receipts to exceed government expenditures.
The presence of positive externalities _____ justify the current structure of government programs for higher education.
A. should B. does C. should not D. does not
What is marginal resource cost?
a. the amount that an extra input adds to the firm’s total costs b. the change in quantity of output resulting from a one-unit change in input c. the average variable cost of producing one more unit of output d. the additional income a firm obtains from one more unit of input