The government of a country must make a decision between spending money on a hospital or spending the amount on border security. What kind of decision is this?
a) guns or butter
b) decision at the margin
c) global trade-off
d) production efficiency decision
Ans: a) guns or butter
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The quantity of savings that people are willing to supply will depend on:
A. the price they will receive. B. the amount they have left over after consumption. C. their disposable income. D. their age, since people tend to stop saving once they retire.
In the long run, money demand and money supply determine
a. the value of money and the real interest rate. b. the value of money but not the real interest rate. c. the real interest rate but not the value of money. d. neither the value of money nor the real interest rate.
When a firm produces more output using the same inputs or the same output using fewer inputs we say that the firm
A) experiences positive technological change. B) will hire more workers in order to produce more output. C) experiences an increase in demand. D) is operating in the short run.
If the price elasticity of supply is zero, the supply curve is a horizontal line parallel to the quantity axis
a. True b. False Indicate whether the statement is true or false