Consider the production possibilities frontier displayed in the figure shown. The fact that the line slopes downward displays which economic concept?
A. Specialization
B. Trade-offs
C. Production possibilities
D. Efficiency
Answer: B
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Suppose that choice sets are convex. State assumptions about tastes that are necessary and sufficient to guarantee that the solution to the consumer optimization problem is a unique interior solution. (Explain)
What will be an ideal response?
What is the real (adjusted for inflation) present value of $104.25 that you could receive one year from now, given that the rate of interest is 4.25 percent and the anticipated rate of inflation is 1 percent?
A) $99.05 B) $100.97 C) $107.64 D) $100.00
Markets provide
A) information. B) prices. C) incentives. D) all of these choices.
Rent control continues to survive despite its flaws because
A. economists generally favor it. B. landlords like its simplicity. C. it creates economic growth in a city. D. those displaced by the policy do not live in the community and cannot vote to end it.