The new government of Pakistan transfers money from the rich to the poor. This will likely:
A. make the Pakistani AD curve steeper.
B. shift the Pakistani AD curve to the left.
C. shift the Pakistani AD curve to the right.
D. make the Pakistani AD curve flatter.
Answer: C
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If Ripco owns the building where it operates, then if
a. the firm pays no rent, there is no opportunity cost b. the firm does not rent the building to anyone else, there is no opportunity cost c. the firm pays no rent, there is an opportunity cost d. its usage of the building precludes it from renting to anyone else, there is an opportunity cost e. the firm could use the building for other things, there is no opportunity cost
Higher prices can discourage use/consumption, which in turn may better allocate scarce resources.
Answer the following statement true (T) or false (F)
Consider the following regression equation: y= 
0+ 1x1+ …+ kxk + u
In which of the following cases, the dependent variable is binary? A. y indicates the gross domestic product of a country B. y indicates whether an adult is a college dropout C. y indicates household consumption expenditure D. y indicates the number of children in a family
Using Figure 4.1, suppose that point B represents the optimal mix of output for a society. If market forces cause society to produce and consume at point C, then
A. The forces of supply and demand will return society to point B. B. There is government failure. C. Points A and D are unattainable with the given resources and technology. D. There is market failure.