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