Markets tend to produce too little of an excludable public good because
A) transaction costs are high.
B) of the lack of rivalry.
C) these goods are depletable.
D) All of the above.
B
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Which of the following relationships correctly identifies the profit maximization condition of a firm in a perfectly competitive market?
A) Marginal cost < Price = Marginal revenue B) Marginal cost > Price = Marginal revenue C) Marginal cost = Price = Marginal revenue D) Marginal cost = Price < Marginal revenue
When a macroeconomic aggregate is procyclical
A) it grows faster than GDP. B) its deviations from trend generally change before the deviations from trend in GDP do. C) its deviations from trend generally change more that the deviations from trend in GDP. D) its deviations from trend are more often of the same sign as the deviations from trend in GDP.