Which of the following statements is true?
A. Many different production processes can be technically efficient, but only the method that involves the lowest possible cost is economically efficient.
B. Many different production processes can be economically efficient, but only the method that involves the lowest possible cost is technically efficient.
C. There are many production processes that are both technically and economically efficient, but only one of these involves the lowest possible cost.
D. There is only one production process that is technically efficient, and this process is also economically efficient.
Answer: A
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When a government has a budget deficit, it must issue (sell) government bonds to finance the deficit
Does it matter for the rate of inflation if the government sells the government bonds to the public or sells the government bonds to the central bank? Explain why it does or does not matter.
If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could
A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market. B) appeal to firms' environmental conscience to pollute less. C) subsidize production. D) rely on the Coase Theorem.
If a perfectly competitive market is in equilibrium and then market demand increases, which of the following would happen?
a. producer surplus would definitely increase and consumer surplus may increase or decrease b. producer surplus would definitely decrease and consumer surplus may increase or decrease c. consumer surplus would definitely decrease and producer surplus may increase or decrease d. consumer surplus would definitely increase and producer surplus may increase or decrease e. producer and consumer surplus would remain unchanged
The opportunity cost of increased production of some good can be measured with
a. the slope of a ray to the production possibilities curve. b. the area under the curve of a production possibilities curve. c. the area of the rectangle bounded by the axes and the point on the production possibilities curve. d. the slope of the production possibilities curve. e. All of the above are correct.