An economy that is producing on the production possibility frontier at some point other than the output of efficient allocation is
A. inefficient, as the combination of goods and services produced is not what people want.
B. inefficient, as that combination of goods could be produced at a lower cost if more efficient technology were employed.
C. efficient, as the economy is producing goods at the lowest possible cost.
D. efficient, as it is on the production possibility frontier.
Answer: A
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If tax rates are cut, one might expect to observe an increase in the budget deficit. Supply-siders question this observation, arguing that
A. this is a price that must be paid for a more equitable tax system. B. when taxes are cut, expenditures must also be cut. C. a decrease in the tax rate may actually generate an increase in tax revenues. D. tax wedges will make up the difference.
Dumping refers to selling a product abroad at higher prices than the product is sold domestically
Indicate whether the statement is true or false
The demand for real estate derives from the need that market participants (e.g., owner occupants, tenants, renters) have for shelter and convenient access to other locations. This competition for physical location and space occurs in the:
A. User Market B. Capital Market C. Government Sector D. Property Market
The basic characteristic of the short run is that:
A. a firm does not have sufficient time to change the amounts of any of the resources it employs. B. the firm does not have sufficient time to cut its rate of output to zero. C. barriers to entry prevent new firms from entering the industry. D. the firm does not have sufficient time to change the size of its plant.