If a consumer is maximizing utility, she will purchase quantities of output to the point where the price of the last unit purchased is equal across all goods

If a product has zero external costs, then

A) marginal social cost equals marginal private cost. B) marginal social cost is greater than marginal private cost. C) marginal social cost is less than marginal private cost. D) marginal social cost equals zero. E) We need more information to determine the relationship between marginal private cost and marginal social cost.

The real business cycle model focuses on how

A) wage and price stickiness explains fluctuations in real GDP. B) the labor theory of value is the best measure of value of a good or service. C) the Federal Reserve should adopt a monetary growth rule. D) productivity shocks explain fluctuations in real GDP.