The marginal social cost of a good or service is the cost borne by the producer.
Indicate whether the statement is true or false
Ques. 2Marginal benefit is the total benefit to a consumer from consuming one more unit of a good or service.
Indicate whether the statement is true or false
Ques. 3A demand curve that is horizontal indicates that the commodity
A) has few substitutes. B) must be very cheap.
C) has a large number of substitutes. D) is a necessity.
Ques. 4The three fundamental questions that any economy must address are:
A) How much will be saved; what will be produced; and how can these goods and services be fairly distributed?
B) What goods and services to produce; how will these goods and services be produced; and who receives them?
C) What will be the prices of goods and services; how will these goods and services be produced; and who will receive them?
D) Who gets jobs; what wages do workers earn; and who owns what property?
Ques. 5Name the four types of market structure in order from most competitive to least competitive.
What will be an ideal response?
Ques. 6The largest government-run health care system in the world, with 1.7 million employees, is in
A) the United Kingdom. B) the United States.
C) Japan. D) Canada.
Ques. 7Suppose your expenses for this term are as follows: tuition: 5,000, room and board: 3,000, books and other educational supplies: 500.
Further, during the term, you can only work part-time and earn 4,000 instead of your full-time salary of 10,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?
A) 5,500 B) 8,500 C) 11,500 D) 14,500
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