The social benefit of a given level of a public good is the vertical sum of all private benefits for that level
Indicate whether the statement is true or false
TRUE
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If real GDP exceeds potential GDP, then the unemployment rate ________ the natural unemployment rate
A) is greater than B) equals C) is less than D) The premise of the question is incorrect because the relationship between real GDP and potential GDP has nothing to do with the relationship between the unemployment rate and the natural unemployment rate. E) The premise of the question is incorrect because real GDP can never exceed potential GDP.
In a market with information asymmetry, gains from trade occur if:
A) the value of the good to the seller is greater than its value to the buyer. B) the value of the good to the buyer is greater than its value to the seller. C) the variable cost of producing the good is zero. D) the opportunity cost of consuming the good is zero.
The purchasing power parity method of comparing income across countries is based on
What will be an ideal response?
Output (Bushels of Barley)Marginal Cost(Dollars)10 bushels$0.3020 bushels$0.6030 bushels$0.9040 bushels$1.20 Refer to Table 5.1, which gives Farmer McColl's marginal cost function for barley. If Farmer McColl is currently producing 25 bushels of barley, which of the following could be the market price for a bushel of barley?
A. $18.75. B. $0.75. C. $1.88. D. $7.50.