If a person chooses self-sufficiency, then she can only consume what she produces
a. True
b. False
Indicate whether the statement is true or false
True
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One problem with using monetary policy to address "bubbles" in asset markets is that:
A. reducing the real interest rate to deal with the bubble could lead to inflation. B. the Federal Reserve is better than financial-market professionals at identifying bubbles. C. monetary policy is not a very good tool for addressing the problem of inappropriately high asset prices. D. the Federal Reserve is not interested in stabilizing output.
The shutdown decision can be restated in terms of producer surplus by saying that a firm should produce in the short run as long as
A) revenue exceeds producer surplus. B) producer surplus is positive. C) producer surplus exceeds fixed cost. D) producer surplus exceeds variable cost. E) profit and producer surplus are equal.
In the long run, if an economy's consumption spending is $5 trillion, its planned investment is $2 trillion, government spending is $1 trillion, net tax revenue is $1 trillion, and household savings are $2 trillion, total output should be
a. $3 trillion b. $5 trillion c. $7 trillion d. $8 trillion e. $11 trillion
Higher production indifference curves correspond to larger amounts of one input in relation to a second input
a. True b. False Indicate whether the statement is true or false