For a closed economy, GDP is $12 trillion, consumption is $7 trillion, taxes net of transfers are $3 trillion and the government runs a deficit of $1 trillion. What are private saving and national saving?

Suppose firms A and B each make T-shirts. Firm A's production function is q = L0.5 K0.5. Firm B's production function is q = 1.2 ? L0.5 K0.5

If the two firms each hire the same amounts of capital and labor, compare the two firms in terms of APL and MPL.

In drilling a new oil well in an existing oil field, the fact that output on existing wells is reduced means that

a. existing wells have negatively sloped marginal cost curves. b. existing wells and new wells are owned by different people. c. existing wells and new wells are owned by the same people. d. there is a discrepancy between private and social marginal costs.