Household production is more likely to occur when
a. it requires few specialized resources
b. technology makes it more costly than market production
c. tax avoidance is undesirable
d. less control over the final product is desirable
e. the opportunity cost of household production is high
A
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What are the three forces that cause the aggregate demand curve to slope down? Explain
What will be an ideal response?
Command-and-control legislation, as compared to incentive-based regulation:
a. encourages the use of comparative advantage in the short run, and the development of new technology in the long run. b. encourages the use of comparative advantage in the short run, but discourages the development of new technology in the long run. c. discourages the use of comparative advantage in the short run, but encourages the development of new technology in the long run. d. discourages the use of comparative advantage in the short run, and discourages the development of new technology in the long run.
Which of the following is a true statement?
a. The concept of potential output might be thought of as the maximum sustainable output of the economy under normal circumstances. b. Actual output cannot exceed potential output, even during a boom. c. When the actual rate of unemployment exceeds the natural rate, the actual output of the economy will rise above its potential. d. Potential output represents the absolute maximum level of production.
The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,
a. the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price. b. the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price. c. there is a surplus of blue jeans at the $30 price. d. All of the above are correct.