Refer to the following table:
The optimal level of activity is:
A. 2
B. 3
C. 4
D. 5
E. There is no optimal level in this case because marginal benefit does not equal marginal cost at any activity level.
Answer: C
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A ton of coal purchased by your local utility to burn to make electricity would be best described as
A) an intermediate good. B) a financial asset. C) a used good. D) a final product.
Any point on a production possibilities frontier (PPF) itself is
A) production efficient. B) unattainable. C) inefficient. D) equitable.
An active deficit:
a. Is the portion of the government deficit that automatically helps a nation from falling further into a recession. b. Is always less than the actual deficit when a nation is currently below full employment. c. Is the difference between government spending and taxes at full employment. d. All of the above are true. e. None of the above is true.
In the open-economy macroeconomic model, if for some reason foreign citizens want to purchase more U.S. goods and services at each exchange rate, then
a. the demand for dollars in the market for foreign-currency exchange shifts right. b. the demand for dollars in the market for foreign-currency exchange shifts left. c. the supply of dollars in the market for foreign-currency exchange shifts right. d. the supply of dollars in the market for foreign-currency exchange shifts left.