For the efficient level of output to be produced, marginal
A. social cost must be zero.
B. benefit must equal marginal private cost.
C. benefit must equal marginal social cost.
D. private cost must equal zero.
Answer: C
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The Taylor rule is consistent with the Fed's dual mandate of
A) stable exchange rates and price stability. B) price stability and maximum sustainable employment. C) financial market stability and stable exchange rates. D) maximum sustainable employment and financial market stability.
Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent. If Diana receives her money before Albert, she must
have invested in a. common stock b. preferred stock c. convertible stock d. corporate bonds e. low-yield dividends
The resources that a taxpayer devotes to complying with the tax laws are a type of
a. consumption tax. b. value-added tax. c. deadweight loss. d. producer surplus.
When actual investment is greater than planned investment:
A. firms have sold less output than expected. B. the economy produces the short-run equilibrium output. C. firms have sold more output than expected. D. the quantity of output sold is the amount the firm expected to sell.