Combinations of goods lying outside the budget line, not the PPF:
a. suggest that the consumer gains less utility than any point inside the budget line
b. indicate that the consumer is not spending all his income
c. are attainable if the country engages in specialization and trade
d. are unattainable, given a consumer's income
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Answer the following statement(s) true (T) or false (F)
1. A negligence standard, with the allowance of contributory negligence, always leads to a socially optimal outcome. 2. Strict liability is the liability that exists when it can be proven beyond a reasonable doubt that the defendant was negligent. 3. Negligence is irrelevant when a strict liability standard is applied. 4. The principle of general average gives a ship's captain an incentive to consider the value of cargo when jettisoning it to prevent a disaster. 5. The doctrine of Respondent Superior contends that an employer is sheltered from torts committed against his employees.
A long-run supply curve is more sensitive to price changes than is a short-run supply curve
Indicate whether the statement is true or false
Real GDP is important because it is highly correlated with other measures of economic activity.
Select whether the statement is true or false. A. True B. False
The higher the price that must be paid to purchase a government bond,
A. the lower will be the market rate of interest on that bond. B. the higher will be the market rate of interest on that bond. C. the greater will be the inflation rate. D. the lower will be the inflation rate.