For resource use to be allocatively efficient, when the marginal benefit of a slice of pizza exceeds the marginal cost,
A) more slices of pizza should be produced.
B) fewer slices of pizza should be produced.
C) no more slices of pizza should be produced.
D) allocative efficiency is reached only if the marginal benefit exceeds the marginal cost by as much as possible.
E) None of the above answers is correct.
A
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Suppose the airplane market is an oligopoly. If the firms act as a monopolist, the price will be ________ and if the firms act as competitors the price will be ________
A) $13 million per plane; $1 million per plane B) $1 million per plane; $13 million per plane C) $13 million per plane; $13 million per plane D) $1 million per plane; $1 million per plane E) None of the above answers is correct.
In the Keynesian model, short-run equilibrium occurs
A) where the IS and LM curves intersect. B) where the IS curve, LM curve, and FE lines intersect. C) where the IS curve intersects the FE line. D) where the LM curve intersects the FE line.
Susan switches from going to Speedy Lube for an oil change to changing the oil in her car herself. Which of the following is correct? The value of changing the oil is
a. included in GDP whether Susan pays Speedy Lube to change it or changes it herself. b. included in GDP if Susan pays Speedy Lube to change it but not if she changes it herself. c. included in GDP if Susan changes it herself, but not if she pays Speedy Lube to change it. d. not included in GDP whether Susan pays Speedy lube to change it or she changes it herself.
Market equilibrium maximizes the sum of:
A. total cost and total benefit. B. excess demand and excess supply. C. consumer surplus and producer surplus. D. marginal cost and marginal benefit.