At the current level of output, the marginal social cost of tennis balls is greater than the marginal social benefit. Then
A) more than the efficient quantity of tennis balls is being produced.
B) there is excess demand for tennis balls.
C) firms producing tennis balls must be earning negative profit.
D) too few tennis balls are being produced.
A
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The speculative attack on the British pound in 1967 succeeded because
A) the pound was seriously undervalued relative to the dollar. B) Britain decided to drop out of the Bretton Woods system. C) British exports greatly exceeded British imports, causing a large inflow of gold. D) the Bank of England lacked the international reserves to defend the existing exchange rate indefinitely.
Which is true of total federal spending relative to GDP?
a. It is the most commonly used measure of the size of government. b. There really is no upper limit to the ratio of total government spending to GDP. c. It has steadily increased over the last 50 years. d. All of the above are correct. e. Only a and c are correct.