Refer to the graph below.
As you move from point A to point B:
A. production efficiency is decreased because we are no longer on the production possibility curve.
B. production efficiency is decreased because we have less of good Y.
C. the change in efficiency is unclear.
D. production efficiency is increased because we have more of good X.
Answer: A
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A payment that is made by the government for which no goods or services are given in return is known as
A) a public good. B) a transfer payment. C) a negative externality. D) a free rider.
The major difference between a closed economy and an open economy is that a(n)
A. closed economy balances budget, while an open economy does not. B. open economy is a market economy, while a closed economy relies on planning. C. open economy interacts with the rest of the world, while a closed economy does not. D. closed economy keeps political affairs secret, while an open economy does not.
If Sam's manufacturing plant is in a perfectly competitive labor market where the current wage is $14 per hour, his firm can expect to drive up wages if it expands its operations by 50%
Indicate whether the statement is true or false
Which of the following would be most likely stated by an economist who advocates for fine-tuning?
A. Designing economic policies that please everyone is complex. B. Political disagreements make economic policies difficult to implement. C. Measuring economic performance is complicated because of the size of the economy. D. Changing economic policies in response to market changes is reasonable.