The slope of a typical production possibilities frontier reflects the fact that
a. some systems of market organization are more efficient than others.
b. the invisible hand always functions smoothly in a market system without government intervention.
c. when resources are allocated efficiently, it's impossible to produce more of anything without producing less of something else.
d. production is only possible when resources are allocated efficiently.
c
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If the MPC = 0.80, the tax multiplier is
A) -2. B) -4. C) -5. D) -8.
Suppose that market demand can be represented as p = 100 - 2Q. There are 10 identical firms producing an undifferentiated product, each with the total cost function TC = 50 + q2. Compare the competitive outcome with the cartel outcome
What is the individual firm's incentive to cheat on the cartel?
In a simplified system where all banks have uniform reserve requirements and checkable deposits are the only form of money, the money multiplier is equal to 1 over the required reserve ratio
a. True b. False Indicate whether the statement is true or false
Grown children fawning over an elderly parent in order to try to secure a larger inheritance is an example of
A) rent seeking. B) logrolling. C) rational ignorance. D) public choice.