If an external benefit is present, then the
A) marginal private benefit curve lies above the marginal private cost curve.
B) marginal social benefit curve lies above the marginal private benefit curve.
C) marginal social cost curve lies above the marginal private benefit curve.
D) marginal social benefit is equal to the marginal social cost.
E) marginal social benefit curve is the same as the marginal private benefit curve.
B
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When do diminishing marginal returns occur?
(A) When some workers increase output but others decrease it. (B) When extra workers will have to wait their turn to be productive. (C) When the marginal product of labor increases as the number of workers increases. (D) When additional workers increase total output at a decreasing rate.
Aggregate demand is defined as the total spending
a. of all consumers, business firms, government agencies, and foreigners on final goods and services produced in the United States. b. by all consumers, business firms, government agencies, and foreigners in the United States. c. consumers, businesses, government agencies, and foreigners wish to make in one year. d. of consumers, businesses, and government agencies on final output.