________ is a situation in which a good or service is produced at the lowest possible cost
A) Allocative efficiency
B) Productive efficiency
C) Equity
D) Optimal marginalism
Answer: B
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One advantage of user charges is they _____
a. increase with inflation b. they apply the ability-to-pay principle of taxation c. help ration consumption of the taxed good d. a and c
Purchasing power parity suggests that
a. Given fixed prices, interest rates adjust so that a good costs the same across two countries b. Given fixed exchange rates, prices adjust such that a good costs the same across two countries c. All of the above d. None of the above
A company that continues to have strong profit performance during an economic downturn when many other companies are suffering losses or failing should see:
A. the demand for their bonds decrease and their yields decrease. B. the demand and price for their bonds decrease. C. an increase in the yield of their bonds and the price of the bond increases. D. their bond rating maintained or actually increase.
When a surplus exists
A) the price is below the market clearing price. B) quantity demanded exceeds quantity supplied. C) an excess quantity demanded exists. D) none of the above.