The socially efficient level of output is determined where

The socially efficient level of output is determined where
 a. marginal social cost equals marginal social benefit
  b. marginal private cost equals marginal social benefit
  c. average social cost equals average social benefit
  d. average private cost equals average social benefit
  e. total social cost equals total social benefit

QUESTION 2

Which of the following is not an example of derived demand?
 a. More people want to plant gardens in the spring; therefore, demand for hoes and shovels increases then.
  b. Strong ticket sales for a concert cause the producers to schedule an extra show and demand more ushers.
  c. Increased use of robots leads to a decrease in demand for labor.
  d. The development of alternative fuels made from corn leads to an increase in demand for corn.
  e. Increasing demand for music leads to the construction of more recording studios.

QUESTION 3

In a free market, a firm's rate of output is determined
 a. where marginal social cost equals marginal social benefit
  b. where marginal private benefit equals marginal social benefit
  c. where marginal social cost equals marginal private cost
  d. where marginal private cost equals marginal private benefit
  e. by government

QUESTION 4

If the price of a resource increases, other things constant, less of that resource will be hired because
 a. producers will substitute away from that resource
  b. producers fear starting a trend toward higher resource prices
  c. the demand curve for the product will shift to the left
  d. highly paid resources don't produce as much
  e. it makes other resources look expensive as well

QUESTION 5

In order to increase society's total welfarer, a production process that produces a negative externality should be
 a. taxed
  b. provided by the government
  c. ignored
  d. subsidized
  e. exported

QUESTION 6

If the price of a resource falls, other things constant,
 a. demand for the product it produces will increase
  b. demand for a substitute product will increase
  c. demand for a substitute resource will fall
  d. supply of that resource will rise
  e. supply of a substitute resource will also rise

QUESTION 7

Society's total cost of producing a good
 a. includes only the cost to the firm
  b. includes only the external cost
  c. includes all private and external costs
  d. equals the value of the output level that maximizes the firm's profit
  e. equals the value of the output level that minimizes the firm's loss

QUESTION 8

Derived demand refers to
 a. demand curves derived from utility functions
  b. an individual demand curve estimated from a market demand curve
  c. a market demand curve estimated from individual demand curves
  d. demand for a resource derived from the demand for the product produced by that resource
  e. demand for a product derived from the demand for the resource used to make that product