Taxes, subsidies, and monopolies help us achieve allocative efficiency
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is true for the economy depicted in Figure 9-2?
a. potential output equals y1 b. it would be impossible for this economy to achieve an output greater than y1 c. when output y1 is achieved, the actual rate of unemployment will exceed the natural rate of unemployment d. when output y1 is achieved, the actual rate of unemployment will be less than the natural rate of unemployment
Consider the market for leather shoes. If producers believe the price of leather shoes will increase next month, today
A) the supply curve for leather shoes shifts rightward. B) the supply curve for leather shoes shifts leftward. C) there is a movement along the supply curve for leather shoes. D) the equilibrium price of leather shoes falls. E) the equilibrium quantity of leather shoes increases.
Which one of the following is a characteristic of capitalism but not of communism?
a. private property. b. wage payments. c. technological development. d. use of capital equipment.
The measure of production that values production using current prices is called
A) nominal GDP. B) value-added GDP. C) real GDP. D) underground GDP.