In constructing a production possibilities curve, all of the following are assumed EXCEPT
A) resources are fully employed.
B) the quantity and quality of resources being used is fixed.
C) the state of technology is improving.
D) the time period involved is fixed.
Answer: C
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Economic efficiency in a competitive market is achieved when
A) producer surplus equals the total amount firms receive from consumers minus the cost of production. B) the marginal benefit equals the marginal cost from the last unit sold. C) consumers and producers are satisfied. D) economic surplus is equal to consumer surplus.
A publicly traded firm has 4 million shares of stock outstanding, with a current share price of $50. The value of its plant and equipment is $250 million. Its profit annually is $50 million. Tobin’s q for this firm is
a) 0.75 b) 0.80 c) 1.00 d) 1.20 e) 1.25
Which of the following is an accurate statement about people’s choices?
a. They choose, knowing for sure which choice is best. b. They choose, expecting the best outcome from their choice. c. They choose, doubting their choice will have a good outcome. d. They choose, having no idea what choice is a good one.
the government may reduce government spending or increase taxes in order to eliminate
What will be an ideal response?