Micro-failures of the marketplace imply that:
A.) we are inequitably distributing output.
B.) we are at the wrong point on the production possibilities curve.
C.) we are overproducing at a point beyond the production possibilities curve.
D.) Both A and B are true.
D.) Both A and B are true.
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Gabby flips a fair coin and it comes up heads. Gabby suffers from the gambler's fallacy if:
A. she thinks the coin will come up heads on the next flip because it came up heads on the previous flip. B. she is more willing to bet on the outcome of the next flip. C. she thinks the coin is less likely to come up heads because it came up heads on the previous flip. D. she thinks the coin is equally likely to come up heads or tails on the next flip.
In both price-taker and competitive price-searcher markets, when an increase in market demand disrupts a long-run equilibrium, it will lead to
a. higher short-run prices and long-run profits. b. higher short-run prices, short-run profits, and the entry of additional firms into the market. c. higher short-run prices and the exit of firms from the market due to economies of scale. d. no change in prices in the short run, but new firms will enter in the long run.
When the CPI is 300, a real GDP of $8 trillion is demanded in a given year. If the CPI is 250, which of the following could be the real GDP demanded?
A. $10 trillion B. $8 trillion C. $6 trillion D. $4 trillion
In 1980 the highest marginal tax rate was
A. 28 percent. B. 33 percent. C. 50 percent. D. 70 percent.