The production possibilities frontier shows:
a. possible combinations of two types of goods that can be produced when all available resources are fully and efficiently employed.
b. possible combinations of two types of resources that can be used to produce a given combination of two goods.
c. possible quantity of a good that will be consumed at various possible prices.
d. possible quantity of a good that will be supplied at various possible prices.
a
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During the 1960s, many Keynesian economists felt that by studying the Phillips curve
A) policy makers could fine-tune the economy by selecting policies that would produce the exact mix of unemployment and inflation that suited current government objectives. B) policy makers could eliminate even frictional unemployment in the economy. C) the President and Congress did not need to attempt to balance the budget. D) policy makers could dispense with the Federal Reserve's open-market operations.
The outcome of the Stackelberg model is
A) a Nash equilibrium. B) the same as the Cournot outcome. C) that the follower earns zero profit. D) that the follower cannot be on its best-response curve.
When a monopoly is regulated it is required to sell lower output at a lower price
a. True b. False Indicate whether the statement is true or false
When the government provides a legal framework,
A. Private market transactions benefit and government market transactions benefit. B. Private market transactions suffer and government market transactions benefit. C. Private market transactions suffer and government market transactions suffer. D. None of the choices are correct.