Recent productivity acceleration has been
What will be an ideal response?
positively influenced by information economies of scale because expanding production has a very low marginal cost. correct
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A perpetuity is selling for $20,000 when the interest rate is 6%. What must the expected annual payment be?
a. $600. b. $1,200. c. $3,333. d. $6,000.
The invisible hand refers to the coordination that occurs from:
A. a government agency finding efficiencies. B. everyone working for the overall good of society. C. everyone working in his or her own self-interest. D. a government coordinating economic activity.
Adam Smiths theory of the invisible hand posits the actions of independent, self-interested buyers and sellers will ________ lead to the most efficient allocation of resources.
A. never B. rarely C. often D. always
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.