Points inside the production possibilities frontier represent inefficient levels of production
a. True
b. False
Indicate whether the statement is true or false
True
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According to Keynes' theory of money demand, a low interest rate increases the likelihood of a capital ________ and ______ the interest elasticity of money demand
a. gain on bonds; reduces. b. gain on money; increases. c. loss on bonds; reduces. d. loss on money; increases. e. none of the above.
A horizontal long-run average cost curve indicates
A. constant returns to scale. B. constant marginal physical product. C. diseconomies of scale. D. economies of scale.
Mark holds $100 in cash in his wallet to make purchases for gas and groceries. This represents the
A. Speculative demand for money. B. Transactions demand for money. C. Precautionary demand for money. D. Market demand for money.
The figure above shows the supply and demand curves for pizza. If the market is at its competitive equilibrium, what area in the graph above represents:
a. consumer surplus? b. producer surplus?