A strategy that achieves a goal at the lowest cost in total resources without consideration of who pays those costs is:
A. always the most profitable to the firm.
B. efficient.
C. impossible.
D. inefficient.
Answer: B
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Suppose Congress increased spending by $100 billion and raised taxes by $100 billion to keep the budget balanced. What will happen to real equilibrium GDP?
A) Real equilibrium GDP will fall. B) Real equilibrium GDP will rise. C) Real equilibrium GDP will initially rise, but then fall below its previous equilibrium value. D) There will be no change in real equilibrium GDP.
Refer to Table 5.4. If at Job B the $20 outcome occurs with probability .2, and the $50 outcome occurs with probability .8, then the standard deviation of payoffs at Job B is nearest which value?
A) $10 B) $12 C) $20 D) $35 E) $44
When OPEC raised the price of crude oil in the 1970s, it caused the United States'
a. nonbinding price floor on gasoline to become binding. b. binding price floor on gasoline to become nonbinding. c. nonbinding price ceiling on gasoline to become binding. d. binding price ceiling on gasoline to become nonbinding.
Which group would be the least upset by wide variation in the income distribution?
a. utilitarians b. liberals c. libertarians d. Each group would be equally upset.