In the above figure, suppose the quantity produced is 40. Then
A) the marginal social cost of the 40th unit is $1.
B) the willingness to pay for the 40th unit is $2, the equilibrium price.
C) production is not efficient because MSB > MSC.
D) production is not efficient because MSC>MSB.
D
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Members of the Federal Reserve Board of Governors can set monetary policy in relative independence of political pressures because
A) monetary policy is too complex to be understood by the general public. B) their authority derives from the Constitution rather than popular election. C) they are not allowed to belong to any political party. D) they hold their positions for fourteen-year terms.
Economic growth due to labor force expansion or capital investments will result in I. A leftward shift of short-run aggregate supply. II. A rightward shift in long-run aggregate supply
A) I only B) II only C) Both I and II D) Neither I nor II