Assume that the marginal cost of growing pine trees does not include the benefit to the environment as a result of carbon dioxide reduction. By producing where P = MC, the grower will be producing ________ the efficient amount of pine trees.
A. less than
B. exactly
C. more than
D. sometimes more and sometimes less than
Answer: A
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Referring to a production possibilities curve and the goods being compared, depict the economic event. Suppose the United States was at full employment in 2003 just before invading Iraq. Although the war was won quickly, winning the peace took a decade (guns vs. butter).
A. A movement from a point on or near the curve to a point inside the curve B. A shift in the entire curve to the right (outward) C. A shift in the entire curve to the left (inward) D. A movement along the curve
Which of the following is not a type of merger?
a. b and e. b. Diversified merger. c. Horizontal merger. d. Vertical merger. e. Conglomerate merger.
The U.S. trade deficits of the late 1990s were due primarily to low saving rates
a. True b. False Indicate whether the statement is true or false
Which of the following is an assumption used by monetarists in establishing the quantity theory of money?
a) real GDP is equal to the multiplicative product of the money supply and the price level b) the velocity of money is constant c) households exhibit rational expectations d) households exhibit money illusion e) all of the above