Explain the difference between marginal social benefit and marginal external benefit
What will be an ideal response?
Marginal social benefit equals the marginal benefit enjoyed by society (by consumers of the good plus others). It equals marginal benefit plus marginal external benefit. Marginal external benefit is the benefit from an additional unit of a good that is enjoyed by someone other than the consumer.
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Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?
a. 1) Karena and 2) Nathan, even if Nathan has not looked for work during the previous four weeks b. 1) Karena and 2) Nathan, if Nathan has looked for work during the previous four weeks c. 1) not Karena but 2) Nathan, even if Nathan has not looked for work during the previous four weeks d. 1) not Karena but 2) Nathan, if Nathan has looked for work during the previous four weeks
The law of diminishing returns predicts that
A. total output will fall. B. marginal output will fall. C. total output will rise. D. marginal output will rise.