Comment on the following statement: "When there are no externalities present, the level of output for a private good produced by a perfectly competitive firm is efficient."
What will be an ideal response?
The statement is true. Perfectly competitive firms produce where price is equal to marginal cost. If no externalities are present, the price of the product measures the full benefits to society of an additional unit of output, and the marginal cost measures the full costs to society of an additional unit of output. Thus, output is produced up to the point where the additional value from producing another unit the good is equal to the additional cost of producing another unit of the good.
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Which of the following is an example of a public good?
a. Pizzas b. A crowded bus stop c. National Defense d. Cable television
The idea that expected future increases in output cause increases in the current money supply and that expected future decreases in output cause decreases in the current money supply, rather than the other way around, is known as
A. nominal adjustment. B. Granger causality. C. reverse causation. D. money neutrality.
Refer to the information provided in Figure 17.1 below to answer the question(s) that follow. 
Figure 17.1 Refer to Figure 17.1. Dmitri has two job offers when he graduates from college. Dmitri views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $40,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $40,000. Dmitri believes that he has a 50-50 chance of earning the bonus. Dmitri's expected utility from the first job offer is ________ and it is ________ from the second job offer.
A. 180; 160 B. 180; 110 C. 90; 160 D. 180; 210
Labor market compensation contracts can be designed to screen out poor quality workers as well as provide employees with incentives to work hard.
Answer the following statement true (T) or false (F)