Final
in an economy which produces two goods X and Y, using two inputs L and K, efficient input use occurs when
MRTS(LK) X = MRTS (LK) Y
which of these is NOT an exercise in general equilibrium analysis?
a discussion of factors within the wheat market that influence wheat prices GE: relationship between two different markets
all of the payment to a factor of production will be economic rent when the factor of production has
an infinitely inelastic supply curve
which of the following is not included in GDP?
carrots grown in your garden and eaten by your family
when emissions are measured on the horizontal axis, the marginal cost of abating emissions is
downward-sloping because a high level of emissions is cheap to abate and low level of emissions is expensive to abate
General equilibrium analysis is different from partial equilibrium analysis in that general equilibrium analysis
explicitly takes feedback effects into account and partial equilibrium analysis does not
dry cleaning of clothing produces air pollutants. therefore, in the market for dry cleaning services, the equilibrium price
is too low to be optimal, and equilibrium quantity is too high
an efficient allocation of goods in an exchange economy means that
no one can be made better off without making somebody else worse off
common property resource tend to be
overused
which of the following is negative externality connected to attending college?
the fact that the people in the next room play loud music at hours you want to sleep
a firm should hire more labor when the marginal revenue product of labor
exceeds the wage rate