Economic efficiency in a competitive market is achieved when
A) producer surplus equals the total amount firms receive from consumers minus the cost of production.
B) the marginal benefit equals the marginal cost from the last unit sold.
C) consumers and producers are satisfied.
D) economic surplus is equal to consumer surplus.
B
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Economists estimate that ________ of U.S. currency is outside the United States and held primarily by ________
A) less than one quarter; foreign banks and foreign governments B) over half; households and firms in countries where there is little confidence in the local currency C) over half; foreign banks and foreign governments D) less than one quarter; households and firms in countries where there is little confidence in the local currency
The Chapter 3 multiplier, because it assumes an ________ interest rate, is usually an ________ of the fiscal policy multiplier in the IS-LM model
A) endogenous, underestimate B) endogenous, overestimate C) exogenous, underestimate D) exogenous, overestimate