Inefficient allocation of resources occurs when
a. no one can be made better off without having someone else give up something.
b. it is possible to make some people better off without making others worse off.
c. society is operating at a point high on the production possibilities frontier.
d. society is operating at a point low on the production possibilities frontier.
b
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Heterogeneity and the dynamic nature of labor markets are the principal causes of ________ unemployment.
A. chronic B. cyclical C. structural D. frictional
The marginal product of capital is always ________ and it ________ as the capital stock increases
A) positive; increases B) positive; decreases C) negative; increases D) negative; decreases
If a country with a large government debt uses money creation to service and repay the debt, this will lead to
a. lower interest rates. b. an appreciation of the nation's currency in the foreign exchange market. c. inflation, higher interest rates, and a financial crisis. d. rapid economic growth, as the expansionary monetary policy stimulates the economy and generates the additional tax revenue to service the larger debt.
Which of the following represent problems encountered by the Organization for Petroleum Exporting Countries (OPEC) oil cartel?
a. There has been considerable cheating by OPEC members on their quantity allocations. b. The United States has accused the OPEC for price fixing and has partially banned oil cartels. c. World demand for oil has declined by approximately 1/3 since the mid-1970's, making it extremely difficult for OPEC to maintain satisfactory prices and revenues for its members. d. The high production costs incurred by all the OPEC members prompts them to break the cartel and charge a high price in the international market.