If an economy is allocatively efficient, it must be producing
A) beyond its production possibilities frontier.
B) inside its production possibilities frontier.
C) on its production possibilities frontier.
D) the goods and services that are the most expensive.
E) the goods and services that are the least expensive to produce.
C
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The theory of the kinked demand curve is used to explain
a. bizarre corporate behavior. b. sales maximization. c. the maximin criterion. d. sticky prices in oligopolies.
The income elasticity of demand for all goods taken together must be
A. between 0 and 1. B. zero. C. +1. D. -1.
The International Monetary Fund (IMF) makes loans to encourage economic development.
Answer the following statement true (T) or false (F)
A solution concept for a game is
a. a measurement of the game's complexity. b. a way of determining whether the first or second player has an advantage. c. a normative judgment of the desirability of the game's outcome. d. a rule for predicting the game's outcome when it is actually played.