Which of the following explains allocative efficiency?
a. Producing the optimal quantity of an output for a society
b. Producing the minimum number of goods that a society wants
c. Producing goods at the lowest possible price and quality level
d. Producing at a level that lowers costs and increases quality
a. Producing the optimal quantity of an output for a society
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The government deficit is equal to
A) new money created minus new borrowing from the public. B) new borrowing from the public plus new money created. C) new borrowing from the public divided by new money created. D) new borrowing from the public minus new money created.
In the United States, spending on residential construction
A) rose rapidly in the period just before the recession of 2007-2009, declined dramatically during the recession, and recovered rapidly thereafter. B) rose rapidly in the period just before the recession of 2007-2009, declined dramatically during the recession, and recovered only slowly thereafter. C) rose rapidly in the period just before the recession of 2007-2009, declined dramatically during the recession, and continued to decline slowly thereafter. D) rose slowly in the period just before the recession of 2007-2009, declined slowly during the recession, and recovered slowly thereafter.
Which of the following is true? i) A rational choice is made on the margin. ii) Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii) Economists try to understand how the economic world works by testing normative statements.
A. Only ii B. i and ii C. Only iii D. i and iii E. Only i
If the government were to decrease corporate income tax, we would predict a:
A. downward movement along the aggregate demand curve. B. shift in aggregate demand to the right. C. shift in aggregate demand to the left. D. shift straight down of aggregate demand.