Each point on the production possibilities frontier achieves allocative efficiency
Indicate whether the statement is true or false
FALSE
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The law of diminishing marginal returns shows the relationship between
A. accounting and economic profits." B. inputs and outputs for a firm in the long run. C. inputs and outputs for a firm in the short run. D. short run inputs and long run outputs for a firm
In comparison with a perfect competition, a single-price monopolist with the same costs creates a ________ consumer surplus and makes a ________ economic profit
A) smaller; larger B) smaller; smaller C) larger; larger D) larger; smaller
A unique characteristic of taxes on economic rents is that such taxes:
A. stimulate aggregate production. B. do not lead to a reallocation of the resource. C. are paid by consumers. D. are always regressive.
Bank panics:
A. occur frequently in fractional reserve banking systems. B. are a risk of fractional reserve banking but are unlikely when banks are highly regulated and lend prudently. C. cannot occur in a fractional reserve banking system. D. occur more frequently when the monetary system is backed by gold.