When allocative efficiency occurs,
A) an economy produces the goods and services most highly valued.
B) marginal benefit exceeds marginal cost by some amount.
C) technology must be increasing.
D) we can simultaneously produce more of all goods.
E) marginal benefit exceeds marginal cost by as much as possible.
A
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The FOMC ________
A) meets four times a year to decide on how to conduct open market operations that influence the money supply B) meets six times a year to decide on how to conduct open market operations that influence the money supply and interest rates C) meets eight times a year to decide on how to conduct open market operations that influence the money supply and interest rates D) meets twelve times a year to decide on how to conduct open market operations that influence interest rates E) none of the above
Which of the following changes in the price index produces the greatest rate of inflation: 80 to 100, 100 to 120, or 150 to 170?
a. 80 to 100 b. 100 to 120 c. 150 to 170 d. All of these changes produce the same rate of inflation.
If the demand curve is a straight line and has the normal negative slope, then as quantity demanded increases, demand
a.
becomes more elastic
b.
becomes more inelastic
c.
is unitary elastic
d.
rises and then falls
e.
is an inverse function of supply
In an open economy, the price of a bike is ________.
A. $140 B. $20 C. $40 D. $100