All economically efficient production plans are technologically efficient.
Answer the following statement true (T) or false (F)
True
Rationale: Technologically efficient production plans are plans that do not waste inputs -- i.e. plans that lie on the production frontier. Economically efficient production plans are plans under which output is produced at the lowest possible cost -- which means (among other things) that no input can be wasted.
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To stop a speculative attack interest rates must be ________, which will ________ aggregate demand.
A. decreased; decrease B. increased; increase C. decreased; increase D. increased; decrease
Macroeconomic equilibrium occurs when the quantity of real GDP _______ equals the quantity of _______
A. demanded; real GDP supplied B. demanded; potential GDP C. supplied; potential GDP D. demanded; real GDP supplied and potential GDP
An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without b. people drive as safely with more airbags as without c. football players with safer helmets 'spear' with their heads more often when tackling d. people read the medicine warnings as carefully when self-medicating as with a doctor's prescription
The point where the budget constraint and an indifference curve are tangent
A. Indicates profit maximization. B. Represents the optimal consumption point. C. Represents maximum total revenue. D. Indicates the optimal level of production.