An economically efficient method of production produces a given level of output at the lowest possible cost.
Answer the following statement true (T) or false (F)
True
This is the textbook definition of economic efficiency.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Kumiko is not at her consumer equilibrium because she sees too many movies and buys too few books. As she moves toward her consumer equilibrium, her total utility from movies will ________ and her total utility from books will ________
A) decrease; decrease B) increase; decrease C) decrease; increase D) increase; increase
In the above figure, the total revenue for a single-price monopolist is shown by the area
A) 0P5fQ1. B) P2P4eb. C) 0P3cQ1. D) 0P4eQ3.
Suppose we observe several years of falling inflation rates for an economy. Which of the following would best explain this phenomenon? a. Unemployment is probably at the natural rate
b. The unemployment rate must be rising. c. The unemployment rate must be below the natural rate. d. The unemployment rate is probably above the natural rate. e. Aggregate output must be increasing.