If the marginal benefit were greater than the cost of a good:
A. producers should decrease production.
B. consumers could increase their utility by buying more.
C. consumers could increase their utility by buying less.
D. social net benefit would be maximized.
Answer: B
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In the aggregate demand-aggregate supply framework, how does an increase in the price level affect potential GDP?
What will be an ideal response?
Everything else held constant, when the federal funds rate is ________ the interest rate paid on reserves, the quantity of reserves demanded rises when the federal funds rate ________
A) above, rises B) above, falls C) below, rises D) below, falls
In order to estimate the current annual GDP, economists:
A. multiply the quarterly estimate by four. B. adjust quarterly GDP estimates to account for seasonal patterns. C. take an average of the last four quarters measured. D. adjust it for changes in price level.
Of the following, which is most likely to be a normal good?
a. hamburger b. automobiles c. used clothing d. low-rent housing units e. macaroni and cheese