When an economy is operating inside its production possibilities frontier, we know that
a. there are unused resources or inefficiencies in the economy.
b. all of the economy's resources are fully employed.
c. economic growth would have to occur in order for the economy to move to a point on the frontier.
d. in order to produce more of one good, the economy would have to give up some of the other good.
a
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Government imposed quantitative limits on the amount of pollution firms are allowed to produce is an example of
A) the Pigovian method of pollution control. B) a tradable emission allowance system of pollution control. C) a Coasian solution to pollution reduction. D) a command-and-control approach to pollution reduction.
There are stereotypes (myths) about home-based businesses. Which of the following statements is a stereotype?
a. Most home-based businesses are run by women such as child care centers b. Most home-based businesses are run by men on computers c. It is hard to have a home-based business, too many conflicts d. Most home-based businesses are financially stable, rewarding
If there is a leftward shift of the money demand curve, which of the following should the Fed do if it wants to keep the price level stable?
a. Lower its interest rate target b. Sell bonds in the open market c. Wait, since the price level does not usually change when the money demand curve shifts d. Raise its interest rate target e. Buy bonds in the open market
Related to the Economics in Practice on page 4: Economists estimate that over one's lifetime, a college degree holder will earn on average ________ someone with only a high school degree.
A. three times as much as B. 27 percent more than C. about 15 percent more than D. almost 70 percent more than