In Figure 2-1, point A is
a. unattainable.
b. inefficient.
c. efficient.
d. preferable to point B.
b. inefficient.
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Though he has retired as a professional football receiver, Jerry Rice still earns a sizeable annual income from endorsements. His economic rent is so high because
A. football fans tend to spend a substantial amount of money on sports memorabilia. B. there is still a high demand for his star appeal. C. he is a successful coach in the National Football League. D. people do not like NFL players.
Sunil has decided not to purchase another can of Stosh because his friends laughed at him the last time he purchased some. Stosh is no longer a popular item. Sunil's action is known as
A) price-leadership. B) negative-sum game. C) positive market feedback. D) negative market feedback.
If one country can produce a good with fewer resources than another country, this is called:
A. specialization. B. geographic advantage. C. comparative advantage. D. absolute advantage.
The interest-rate-based transmission mechanism assumes that the Fed can stimulate investment by
A. selling bonds. B. raising the discount rate relative to the federal funds rate. C. raising the required reserve ratio. D. buying bonds.