If society produces at a point inside the production possibilities frontier, it is characterized by full employment of resources.
Answer the following statement true (T) or false (F)
False
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Why doesn’t a perfectly competitive firm charge a price slightly higher than the industry price in order to earn extra profit?
What will be an ideal response?
A recent study suggested that moderate wine drinking may actually benefit one's health. If this information leads to an increased demand for wine, we would expect
a. both the price and quantity of wine sold to increase. b. both the price and quantity of wine sold to decrease. c. the price to decrease and the quantity of wine sold to increase. d. the price to increase and the quantity of wine sold to decrease.
The transmission mechanism alters the real gross domestic product through changes in the price level
a. True b. False Indicate whether the statement is true or false
The aggregate quantity of goods and services demanded changes as the price level falls because
a. real wealth falls, interest rates rise, and the dollar appreciates. b. real wealth falls, interest rates rise, and the dollar depreciates. c. real wealth rises, interest rates fall, and the dollar appreciates. d. real wealth rises, interest rates fall, and the dollar depreciates.