The invisible hand enforces the tendency toward
a. MR = MU.
b. MC = P = MU.
c. MC = MPP = P.
d. MRP = MPP = P.
b
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Some time ago the government of China required many highly skilled technicians and scientists to engage in unskilled agricultural labor in order to develop "proper social attitudes." This policy probably caused China to produce
A) at an inappropriate point along its production possibilities frontier. B) outside its production possibilities frontier with respect to food, but inside with respect to high-technology goods. C) inside its production possibilities frontier with respect to food, but outside with respect to high-technology goods. D) inside its production possibilities frontier.
Property and casualty insurance companies are organized
A) both as stock and mutual companies. B) only as stock companies. C) only as mutual companies. D) primarily as cooperatives.
From where do most of a bank's profit come?
a. Issuing currency. b. Subsidies from the Federal Reserve. c. Lending out funds and charging interest. d. Buying and selling bonds. e. Selling mutual fund shares.
If the real interest rate is 3 percent and the inflation rate is 7 percent, then the nominal interest rate equals:
A. 10 percent. B. 7 percent. C. 4 percent. D. 3 percent.