"The marginal social cost of burning garbage in Houston is the sum of the marginal private cost and the marginal external cost." Is this assertion correct or incorrect?
What will be an ideal response?
The statement is correct. The marginal social cost of any activity is the sum of the marginal private cost plus the marginal external cost.
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Given a production possibilities curve for defense goods and non-defense goods, which of the following is not true?
a. A production point outside the curve may be attained if new resources are discovered. b. A production point outside the curve may be attained by acquiring a new technology. c. A production point outside the curve may be attained by shifting resources to defense goods. d. A production point outside the curve may be attained by acquiring both a new technology and greater resources. e. A production point outside the curve cannot be attained with the current level of resources and technology.
If the number of laborers is 200 and the capital stock is $20,000 . the capital-labor ratio is
a. $1/100 b. $100 c. $20,100 d. $4,000,000 e. $19,900
Which of the following was not a reason that the Federal Reserve took on additional risks associated with unconventional policy during the recession of 2007-2009?
a. The large budget deficit constrained fiscal policy. b. The inflated price of Treasury bills made them too expensive to purchase in open market operations. c. Only the Federal Reserve acting as the central bank can serve as the lender of last resort. d. The Fed was able to act more quickly than Congress.
In the open-economy macroeconomic model, other things the same, when a U.S. resident imports a foreign good, the demand for dollars in the foreign-currency exchange market decreases
a. True b. False Indicate whether the statement is true or false