In contrast to a monopoly which misallocates resources by restricting output and producing too little, government bureaus misallocate resources by _____
a. producing too little
b. producing too much
c. producing the right amount but charging nothing for the output
d. producing zero
b
Economics
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If a perfectly competitive firm's marginal revenue is greater than its marginal cost, as it increases its output, its profit ________ and the price it can charge for its product ________
A) increases; does not change B) decreases; falls C) increases; falls D) decreases; rises E) decreases; does not change
Economics
Classical growth theory asserts that
A) growth in real GDP per person is temporary. B) only some countries can have economic growth. C) real GDP growth will eventually be a constant 3 percent per year. D) nominal GDP growth is most important.
Economics