Refer to the graph shown. To maximize profit, this perfectly competitive firm should produce:
A. 30 units of output.
B. 60 units of output.
C. 50 units of output.
D. 40 units of output.
Answer: C
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Points lying below a production possibilities curve are:
A) inefficient because more can be produced with the available resources. B) inefficient because they represent the production of only one good. C) efficient because combinations represented by those points are attainable. D) efficient because production is maximum on those points with the available resources.
How does a sterilized intervention by the Fed in foreign exchange market differ from an unsterilized intervention?
What will be an ideal response?
The amount of interest owed on a loan of $100,000 after a year at an interest rate of 3 percent is:
A. $3,000. B. $30,000. C. $103,000. D. $100,300.
"As soon as a mayor announced his/her 'get tough on crime' policy on New Year's day, criminals got scared and the crime rate went down." Suppose that the lower crime rate was actually caused by freezing cold temperatures in January?it was just too cold for anybody to be out robbing other people. Which fundamental hazard of the economic way of thinking did the mayor make?
a. believing that what's good for one person is good for the whole group (the fallacy of composition) b. failing to take into account the benefits of crime (the payoff fallacy) c. believing that association is the same as causation d. failing to understand the difference between positive and normative economics.