Locating a point on a utilities possibilities frontier gives you information about
A) both equity and efficiency.
B) equity but not efficiency.
C) efficiency but not equity.
D) profitability but not efficiency.
C
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The largest component of U.S. federal spending that contributes to the U.S. government budget deficit is
A) entitlements. B) military spending. C) interest expenses. D) salaries of government employees.
When someone buys a bond, they give up the bond's price in exchange for:
A. right of ownership. B. future income. C. current income. D. stock.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 20 ? Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 2 and MC2 = 2Q2. What is the profit-maximizing price that the firm should charge?
A. $11 B. $12 C. $9 D. $8
Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade. The men are given food when they walk in and the women are given drink. Suppose they have identical preferences where food and drink provide utility U = F?D? . The contract curve in the Edgeworth box using a representative man and woman would be
a. a right angle connecting the lower left corner with the upper right corner. b. a curve (not necessarily a line) connecting the lower left corner with the upper right corner. c. a line connecting the lower left corner with the upper right corner. d. a right angle connecting the upper left corner with the lower right corner.