The accompanying graph shows the long-run supply and demand curves in a purely competitive market. We know that when this market reaches equilibrium, the marginal
a) cost equals marginal benefit.
b) benefit exceeds marginal cost.
c) cost exceeds marginal benefit.
d) cost equals zero.
Ans: a) cost equals marginal benefit.
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What was suggested by Keynes to move the economy out of a depressed state?
a. The invisible hand b. The price mechanism c. Monetary and fiscal policy d. Zero government intervention
Which of the following would a macroeconomist consider as investment?
a. Marisa purchases a bond issued by Proctor and Gamble Corp. b. Karlee purchases stock issued by Texas Instruments, Inc. c. Charlie builds a new coffee shop. d. All of the above are correct.
All of the following are examples of human capital except:
A. a computer which has top-of-the-line word processing software. B. the ability to coordinate labor effectively. C. knowledge of word processing programs. D. the ability to write clearly.
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, the law of increasing opportunity costs applies to
A. Both brushes and combs. B. Brushes but not combs. C. Combs but not brushes. D. Neither brushes nor combs.