After a trip to Dunkin' Donuts, your friend says that the marginal benefit he derived from the last donut was less than the marginal cost of last donut. Given this information, you
A. know that he should have eaten more donuts.
B. know that he should have eaten fewer donuts.
C. know that he ate just the right number of donuts.
D. cannot tell for sure whether because you don't know his total benefits and total costs.
Answer: B
Microeconomics
- An increase in the price level may be caused
- Which of the following events can cause short-term interest rates to increase?
- Suppose that wages increase sharply this year. Other things being equal a wide-spread increase in wages will have which of the following consequences for the U.S. economy?
- An unanticipated increase in inflation this year will
- If the US economy falls into a recession, then which of the following is likely to happen?
- In 1998, the U.S. economy was at full employment which means that
- Last year, real GDP grew by 5% in the U.S. which implies that
- The current wage paid for carpenters in Raleigh is $15 per hour. At that wage there are 10,000 labor hours supplied per week while the number of labor hours demanded is 12,000. It follows that
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- Which of the following is an example of a contractionary fiscal policy that can be used to decrease aggregate demand and prevent inflation?
- Which of the following statements about the federal budget deficit is true?
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- Suppose the equilibrium GDP is greater than potential real GDP. Which of the following is likely?
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- The supply of land is perfectly inelastic when