Which of the following statements regarding the production possibilities frontier is TRUE?
A) Points outside the frontier are attainable.
B) Points inside the frontier are attainable.
C) Points on the frontier are less efficient than points inside the frontier.
D) None of the above because all of the above statements are false.
B
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According to your authors, the model of perfect competition
A) is an accurate description of real-world markets. B) obscures how plan coordination occurs in the real world. C) explains how economic profits can exist over time. D) explains economic losses better than economic profits.
From an initial IS-LM equilibrium with normally-sloped IS and LM curves, the money supply falls. At the new IS-LM equilibrium we have some combination of a ________ income and a ________ interest rate
A) higher, higher B) higher, lower C) lower, higher D) lower, lower
Refer to Figure 9.1. If the market is in equilibrium, total producer surplus is
A) $30. B) $70. C) $400. D) $800. E) $1200.
If the U.S. Treasury in 1865 had decided to make the dollar convertible into gold at the pre-War rate,
a. relatively cheap British goods would have been highly desired by American consumers. b. the U.S. treasury would have quickly found its stock of gold depleted. c. British citizens would have converted large amounts of pounds into dollars. d. All of the above are correct. e. Only a and b are correct.