If the economy is producing at point D, the opportunity cost of shifting resources from consumer goods to gain 6 capital goods is _______ consumer goods.
Answer: 9
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Figure 4.5 illustrates a set of supply and demand curves for hamburgers. A decrease in demand and a decrease in quantity supplied are represented by a movement from
A) point a to point c. B) point d to point b. C) point b to point c. D) point c to point a.
A market is a natural monopoly when:
A. a good is produced most economically by several firms. B. a good is produced most economically by one firm. C. the government grants a firm a patent on a good. D. the firm's average cost function is everywhere upward sloping.
Contracts are: a. are command-based systems in which prices usually play a relatively small role. b. a set of promises intended to create economic value and enforceableby a court or some other agency, such as an arbitrator
c. are a mode of governance that facilitate the purchase and sale of standardized goods or services, often in repeated transactions. d. economic institutions that can greatly ease the process by which a transaction moves from proposal to commitment.
Suppose a bank has demand deposits of $100,000 and the legal reserve requirement is 20 percent. If the bank currently has $100,000 in reserves, it could expand the money supply by as much as
a. $100,000 b. $400,000 c. $0 d. $20,000 e. $80,000