If the marginal benefits of the output from resources devoted to the production of a product are greater than the marginal costs, then there has been an overallocation of resources to the production of that product.
Answer the following statement true (T) or false (F)
False
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Avital and Joshua each have their own business selling lemonade in front of their houses. When they each charge 25 cents per glass, their total revenues are equal. However, when they each charge 40 cents per glass, Avital's revenues are bigger than Joshua's revenues. This is because:
a. Joshua faces a more inelastic demand curve. b. Avital faces a more elastic demand curve. c. Joshua faces a more elastic demand curve. d. Avital faces a less inelastic demand curve. e. there is a market failure.
In an ideal competitive market economy
a. resources are allocated according to a person's needs. b. resources are allocated according to ability to pay. c. social and individual needs are met by the market. d. All of the above are true.
Since the mid-1970s our merchandise balance of trade has been ________ and our services balance of trade has been _______.
Fill in the blank(s) with the appropriate word(s).
Assume that this graph illustrates a perfectly competitive labor market.
Equilibrium in this labor market is at a wage of ________ per hour and an employment level of ________ person-hours per day.
A. $20; 125 B. $30; 150 C. $20; 200 D. $30; 100