A point that lies inside the production possibilities curve reflects:
a. a failure to achieve full employment.
b. too many resources being allocated to the production of one good.
c. an efficient use of resources.
d. unattainable combinations of output.
a. a failure to achieve full employment.
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The above table gives data for the nation of South Hampton. There are no imports into or exports from South Hampton. The equilibrium level of real GDP is
A) $700 billion. B) $400 billion. C) $500 billion. D) $600 billion. E) $800 billion.
A wholesale flower market is an example of ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
Which of the following statements is TRUE?
A) Government spending as a percent of total national income has continuously decreased since the 1950s. B) Transfer payments are money payments made by the government for which no goods or services are currently received. C) Education is the largest category of federal government expenditures. D) Transfers in kind include Welfare, Social Security, and unemployment insurance benefits.
In the classical model, a self-regulating market would
a. eliminate shortages or surpluses through price changes. b. eliminate shortages but not surpluses. c. render Say’s Law invalid. d. occur only in a labor market.