Although all points on the production possibilities frontier are efficient, that alone does not determine which point is “best” for the society.
Answer the following statement true (T) or false (F)
True
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Assume that goods X and Y are substitutes and are produced in perfectly competitive markets. All else constant, in the short run, a decrease in the supply of good X would cause:
A) an increase in the demand for good Y. B) a decrease in the demand for good Y. C) an increase in the supply of good Y. D) a decrease in supply of good Y.
Explain why a firm can earn more profit by price discrimination than from setting a uniform price
What will be an ideal response?
In the short run, the ratio of the change in total cost and the change in output is greater than the ratio of the change in variable cost and the change in output
a. True b. False Indicate whether the statement is true or false
The cyclically adjusted deficit as a percentage of GDP is 1 percent in year 1. This deficit becomes a surplus of 1 percent of GDP in year 2. It can be concluded from year 1 to year 2 that:
A. fiscal policy was contractionary. B. the federal government is decreasing taxes. C. fiscal policy was expansionary. D. the federal government is increasing spending.