If an economy is operating __________ its institutional production possibilities frontier, it is producing __________ output than it would be at full employment
A) below; less
B) below; more
C) above; less
D) above; more
E) a and d
E
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What is the "good news" and the "bad news" about a lower value of the U.S. dollar?
What will be an ideal response?
What is the average cost per unit for producing 3 units? a. 200. b. 260. c. 70
d. 110.
One bag of flour is sold for $1.50 to a bakery, which uses the flour to bake bread that is sold for $4.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00 . Taking these three transactions into account, what is the effect on GDP?
a. GDP increases by $1.50. b. GDP increases by $3.50. c. GDP increases by $6.00. d. GDP increases by $7.50.
A copper mining firm has discovered that there is gold mixed in with its copper ore. Since the marginal cost of mining the gold is negligible, they are willing to sell it at the current market price of $500 an ounce. If the rate of interest is 5%, the firm should expect the price next year
a. to rise to $505. b. to rise to $525. c. to rise to over $525. d. to remain constant.