If the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources allocatively efficiently
A) more resources should be used to produce computers.
B) fewer resources should be used to produce computers.
C) if the marginal benefit exceeds the marginal cost by as much as possible, the efficient amount of resources are being used to produce computers.
D) None of the above is correct because marginal benefit and marginal cost have nothing to do with using resources allocatively efficiently.
A
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The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. If imported rice is banned, the loss in social welfare is
A) a + b + c + d + i + j. B) a. C) c + e. D) a + b + c + d.
Under a floating exchange-rate system, an increase in the international demand for electronic appliances manufactured in Japan will result in
A. a reduction of international reserves held by the central bank of Japan. B. an appreciation of the yen vis-à-vis other currencies. C. deflation in the Japanese economy. D. an increase in Japan's trade deficit with other countries.