At a perfectly competitive equilibrium with production and trade, the slope of the production possibility curve will be
A) equal to the slope of the price line faced by the consumers.
B) steeper than the slope of the price line faced by consumers.
C) flatter than the slope of the price line faced by consumers.
D) either steeper or flatter than the price line faced by the consumers, depending upon the relative preferences of the consumers.
A
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One of the economic costs of holding currency is that
A) it fulfills no transactions role. B) it fulfills no precautionary role. C) its real value always increases. D) it earns no interest income.
If total utility increases by smaller and smaller amounts as more units of a product are consumed, then marginal utility is:
a. decreasing and is a negative amount. b. decreasing and is a positive amount. c. zero. d. increasing and is a negative amount. e. increasing and is a positive amount.
A basic understanding of economics is needed to be an informed citizen.
Answer the following statement true (T) or false (F)
In a fiduciary monetary system, the value of the money issued by a government is based on
A) the ability to convert it to some asset of value, like silver. B) the gold held in that government's vaults. C) public confidence in that currency's acceptability and predictability of value. D) its being made out of some material with a market value equal to a bill's face value.