A corner solution to a consumer's utility maximization problem implies (Select all that are true.)
consuming a positive amount of one good and zero of the other good.
consuming a positive amount of all goods.
consuming more than an optimal amount of at least one good.
spending all income.
spending less than full income.
the goods are imperfect substitutes
the goods are perfect substitutes
consuming a positive amount of all goods.
consuming more than an optimal amount of at least one good.
the goods are perfect substitutes
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The pollution emitted by a power plant is an example of a detrimental externality
a. True b. False Indicate whether the statement is true or false
The ratio of government debt to GDP since 1940 indicates that the U.S. has mostly been:
a. a net creditor by at least 20% of the value it produces each year. b. a net creditor by at least 10% of the value it produces each year. c. a net borrower by at least 20% of the value it produces each year. d. a net borrower by at least 40% of the value it produces each year.
Josiah installed a metal sculpture in his front yard. A positive externality arises if the sculpture
a. increases the value of other properties in the neighborhood. b. increases the value of Josiah's home c. is visually unappealing to Josiah's neighbors. d. creates a safety hazard for neighborhood children.
Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. 
If the amount of capital increases from 3 to 4 units, the marginal product of the fourth unit of labor
A. decreases by 12 units. B. increases by 5 units. C. increases by 8 units. D. decreases by 3 units. E. none of the above