The government promotes economic efficiency by producing in areas where the market fails to optimally allocate resources
a. True b. False
a
You might also like to view...
Suppose Chip's Chips produces bags of potato chips. An example of a variable cost for this firm would be:
A. the potato peeling machine. B. the factory building. C. the deep fryer. D. None of these is an example of a variable cost.
An increase in the money supply will lead to an increase in equilibrium real GDP only if:
a. the aggregate demand curve is horizontal. b. the aggregate supply curve is vertical. c. the investment function is horizontal. d. the aggregate supply curve is not vertical. e. the investment function is upward-sloping.
Due to resource scarcity,
a. some economic activities have an opportunity cost b. all economic activities have an opportunity cost c. no economic activities have an opportunity cost d. economic activities have opportunity costs equal to their market prices e. economic activities have opportunity costs generally lower than their market prices
What happens when the interest rate on newly issued bonds increases?
a. The price of previously issued bonds with the lower rate decreases but still is higher than its face value. b. The price of previously issued bonds with the lower rate does not change as the face value has not changed. c. The price of previously issued bonds with the lower rate decreases to less than its face value. d. The price of previously issued bonds with the lower rate increases to more than its face value.