Long Beach Island, off the coast of New Jersey, is considering enhancing its system of satellite towers to help communication during emergencies such as hurricanes
A study showed that in Superstorm Sandy the existing number of satellite towers resulted in the marginal social cost of a satellite tower being less than the marginal social benefit. To achieve efficiency, this study indicates that the A) system should be left as is because the quantity of satellite towers is efficient.
B) system should be reduced in size because the quantity of satellite towers is more than the efficient quantity.
C) system should be expanded because the quantity of satellite towers is less than the efficient quantity.
D) None of the above because the study erred in comparing the marginal social cost to the marginal social benefit since it should have compared the marginal private cost to the marginal private benefit.
C
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Refer to Table 13-3. What is its average variable cost of production at its optimal output level?
A) $0 (because its optimal output = 0 ) B) $15 C) $14.75 D) $29
Which of the following is always TRUE of rational behavior?
A) It always entails pursuing one's own best interest. B) It always yields the best possible outcome for all individuals. C) It never involves the pursuit of greedy self-interest. D) It never involves taking into account the interests of others.
If consumer incomes go up and cars are a normal good, the effect on the demand for cars ceteris paribus, will be a(n):
a. upward movement along the demand curve for cars. b. downward movement along the demand curve for cars. c. rightward shift in the demand curve for cars. d. leftward shift in the demand curve for cars.
If the Fed is increasing its holdings of government bonds at the same time the federal deficit is increasing,
A. the Fed and the Treasury are, as usual, coordinating activities. B. crowding out is more likely to occur. C. the debt is being monetized. D. the Fed is attempting to increase interest rates.