If production in the economy is efficient, then changes in market prices
A. Move us to a point above the production possibilities curve.
B. Move us from a point below the production possibilities curve to a point on the production possibilities curve.
C. Have no effect on our position on the production possibilities curve.
D. Move us along the edge of the production possibilities curve.
Answer: D
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Municipal bonds
A. are issued by state and local governments. B. pay interest that is fully taxable. C. are issued by corporations. D. are issued by the federal government.
Suppose the current exchange rate between the Japanese yen and the U.S. dollar is 80 yen = $1. Suppose you can buy more goods in the United States with $10 than you can in Japan with 800 yen. Japan's GDP in dollars will be
A) greater if the current exchange rate, rather than the purchasing power parity exchange rate, is used to convert yen to dollars. B) less if the current exchange rate, rather than the purchasing power parity exchange rate, is used to convert yen to dollars. C) the same whether the current exchange rate or the purchasing power parity exchange rate is used to convert yen to dollars. D) more accurate if the current exchange rate, rather than the purchasing power parity exchange rate, is used to convert yen to dollars.
Profit is the payment made for land resources
a. True b. False
According to the law of increasing opportunity cost,
a. production points outside the production possibility frontier are unattainable b. the production possibility frontier becomes flatter as production increases along the horizontal axis c. the opportunity cost of producing a good rises as production of that good falls d. production points inside the production possibility frontier are unattainable e. the opportunity cost of producing a good rises as production of that good rises