A deadweight loss is never
A. found when people are still living.
B. found when marginal benefits equal marginal costs.
C. found in open economies.
D. allowed in the U.S.
B. found when marginal benefits equal marginal costs.
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Goodland is currently operating at full capacity. The country experienced a sudden boom in economic activity. However, the unemployment rate increased soon afterwards. What is likely to have caused such a phenomenon?
What will be an ideal response?
Everything else being constant, a lower real interest rate
A) increases desired saving and net exports. B) decreases desired saving but increases net exports. C) increases desired saving and investment. D) increases desired investment but decreases net exports.
Compared to the 1950-1973 period, output per worker ________ in the 1974-1995 period.
A. decreased more rapidly B. increased more slowly C. increased more rapidly D. decreased more slowly
The "Lemon's" argument helps to explain why
A. physical depreciation is the only reason for the sharp price differential between new and used cars. B. physical depreciation is an insufficient reason for the sharp price differential between new and used cars. C. new and used cars sell for more than their intrinsic value would suggest. D. used cars fail to satisfy consumer demands for transportation.