Because resources are not equally well suited to producing all goods,
A. as more of a good is produced the inputs used to produce that good will increase in price.
B. as more of a good is produced the quality of that good declines and therefore the costs of production increase.
C. the opportunity costs of producing a good will increase as more of that good is produced.
D. the opportunity costs of producing a good will decrease as more of that good is produced.
Answer: C
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Current offers to purchase or sell scarce goods take account of the wants of future generations
A) if government intervenes to give the future a current voice. B) if people are able to predict future prices. C) only if people are concerned for the welfare of others yet unborn. D) only rarely because people are predominantly selfish.
The guiding principle for the conduct of monetary policy that held that as long as loans were being made for "productive" purposes, then providing reserves to the banking system to make these loans would not be inflationary became known as the
A) free reserves doctrine. B) Benjamin Strong doctrine. C) efficient liquidity doctrine. D) real bills doctrine.
Suppose the demand for peanuts increases. What will happen to producer surplus in the market for peanuts?
a. It increases. b. It decreases. c. It remains unchanged. d. It may increase, decrease, or remain unchanged.
The transmission lag is the period that elapses between the time fiscal policy is enacted and the time it is put into effect
Indicate whether the statement is true or false