________ economy is an economy that produces what consumers demand and does so at the least possible cost.
A. An efficient
B. An inefficient
C. A government-controlled
D. A command
Answer: A
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Economic growth can be portrayed as a(n)
A. movement from a point on to a point inside a production possibilities frontier. B. outward shift of the production possibilities frontier. C. movement from one point to another point on a fixed production possibilities frontier. D. inward shift of the production possibilities frontier.
Explain the equity-efficiency trade-off. Give an example of conflicting equity and efficiency outcomes of a policy
What will be an ideal response?
When gasoline prices rose in the early 2000s, the demand for SUVs fell. An economist would predict that SUV prices would decline or at least not rise as quickly.
Answer the following statement true (T) or false (F)
An increase in the marginal propensity to save from .3 to .4 will cause
A) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a smaller effect on output. B) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a larger effect on output. C) the ZZ line to become flatter and a given change in autonomous consumption (c0 )) to have a smaller effect on output. D) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a larger effect on output.