With allocative efficiency:
A. the available supplies of factors of production are fixed in both quantity and quality.
B. production of any particular mix of goods and services is that mix most wanted by society.
C. production of any particular mix of goods and services occurs in the least costly way.
D. the state of technology-or methods used to produce output-does not change.
Answer: B
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Which of the following statements refers to rent seeking?
A) "The role of the federal government in the U.S. economy grew significantly after the Great Depression. Government spending and taxes are a much greater proportion of total income today than they were in 1929." B) "Laws passed by the federal government often provide benefits for a small number of individuals. These individuals, in turn, have an incentive to contribute to the campaigns of politicians who pass these laws." C) "The federal government should spend more money on programs that help low income citizens and less money on national defense." D) "There is an opportunity cost whenever the federal government spends tax revenue. For example, an additional $1 billion spent on national defense means there will be less revenue for highway construction and maintenance or some other program."
If a household is credit rationed, the MPC out of current disposable income is ________ compared to the MPC out of current disposable income if a household is not credit rationed
A) higher B) lower C) the same D) negative
The equation of exchange can be written as
a. Velocity × Nominal GDP = Price Index b. Real GDP × Price Index = Money supply c. Money supply × Price Index = Real GDP d. Money supply × Velocity = Nominal GDP
Which of the following is a final good or service?
A) tires purchased by Ford for use on one of their SUVs B) the new economics textbook you are using C) the hair gels used by a hairstylist at the local hair salon D) the butter used by a chef to make buttercream frosting E) the taco shells purchased by Taco Bell for use in their tacos