For economic efficiency, which of the following conditions should be met?
A. Scarcer goods should have lower prices.
B. More abundant goods should have lower prices.
C. More abundant goods should have higher prices.
D. All goods should have equal prices.
Answer: B
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Answer the following statements true (T) or false (F)
1) The greater the MPC, the greater the multiplier. 2) The multiplier is equal to the reciprocal of the MPC. 3) The multiplier shows the relationship between changes in a component of spending, say, investment, and the consequent changes in real income and output. 4) Economists widely agree that the value of the real-world multiplier is 2.5. 5) If the MPC is .9 and investment spending increases by $20 billion, real GDP will increase by $200 billion.
Assume that Rudolf withdraws $600 from his bank account which was earning him 10 percent interest per annum to buy a high-end digital camera. The bank interest forgone by him will be the opportunity cost of this purchase
Indicate whether the statement is true or false
Draw a production possibilities frontier for an economy, with the axes labeled "military goods" and "peace goods." Indicate the region that is attainable and the region that is not. Explain the shape of the curve-what assumptions did you make in drawing it?
The Social Security program is financed directly from
A) voluntary contributions by the elderly. B) sales taxes on goods with inelastic demand. C) payroll taxes. D) poll taxes.