Any output combination outside a production possibilities frontier is associated with unused or
underutilized resources.
Indicate whether the statement is true or false
FALSE
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Suppose there are two small island countries: Avarice, which is populated by people who are completely self-interested, and Altruism, which is populated by people who have adopted social norms of generosity and cooperation. If two residents of Avarice play a prisoner's dilemma game, they are likely to:
A. reach the Nash equilibrium less often than would residents of Altruism. B. play their dominated strategies more often than would residents of Altruism. C. reach the Nash equilibrium more often than would residents of Altruism. D. never reach the Nash equilibrium.
A higher required reserve ratio _________ the value of the simple deposit multiplier
A. Increases B. Decreases C. Eliminates
Which combination of factors would most likely increase aggregate demand?
A. An increase in household indebtedness and a decrease in foreign demand for products. B. An increase in personal taxes and a decrease in government spending. C. An increase in consumer wealth and a decrease in interest rates. D. An increase in business taxes and a decrease in profit expectations.
Suppose Sarah owns a small company that makes wedding cakes. The table below shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number ofCakes Per DayTotal CostPer Day0$1001$1802$2203$3004$4005$5206$660If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $95 each, then Sarah should produce ________ cakes per day.
A. 6 B. 3 C. 5 D. 0