If the economy were producing at point Z and moved to point D,
A. it could only produce more butter at the sacrifice of some gun production.
B. it could only produce more guns at the sacrifice of some butter production.
C. it could produce more guns and more butter at the same time.
D. it would be impossible to produce more guns without the sacrifice of some butter production.
C. it could produce more guns and more butter at the same time.
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What is the good or service is given the most weight in the CPI?
A) housing B) apparel C) recreation D) food and beverages E) transportation
Resource use is allocatively efficient if the
A) total cost of what the resource produces is less than the total benefit of what is produced. B) total cost of what the resource produces is equal to the total benefit of what is produced. C) marginal benefit of what the resource produces has diminished to zero. D) marginal cost of what the resource produces is equal to the marginal benefit of what is produced.
The principal is distinct from the agent in the principal-agent model because
a. the principal offers the contract to the agent. b. the principal is fully informed. c. both a and b. d. neither a nor b.
An increase in government purchases or a decrease in taxes, other things being equal, will tend to:
a. increase interest rates and decrease investment. b. increase interest rates and increase investment. c. decrease interest rates and decrease investment. d. decrease interest rates and increase investment.