In cost-benefit analysis, the government should intervene in environmental affairs as long as
A. The government corrects market failures despite government failure.
B. The value of government failure exceeds the value of market failure.
C. The government corrects market failures without government cost.
D. The improvement in the environment exceeds the costs.
Answer: D
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In the expanded circular flow diagram, the government supplies
A) factors of production to the factor market. B) goods and services to households. C) factors of production to firms. D) goods and services to the product market.
For every firm that faces a downward-sloping demand curve for its output,
a. marginal cost exceeds marginal revenue at all output levels b. marginal revenue equals the price of the last unit sold c. marginal revenue is less than the price of the last unit sold d. marginal revenue exceeds the price of the last unit sold e. marginal cost exceeds the price of the last unit sold
Which of the following lends reserves to private banks?
A. The Legislative Branch of government B. Comptroller of the Currency C. State banking commissions D. The Federal Reserve System
Starting from long-run equilibrium, the long-run impact of an increase in autonomous investment, compared to the original equilibrium, is:
A. higher inflation and the same output. B. lower inflation and lower output. C. higher inflation and higher output. D. lower inflation and the same output.