A small Caribbean island-country produces only pineapples and rum. If resources are used efficiently in the economy,
A. it will not be possible to produce more rum without decreasing the production of pineapples.
B. it will be possible to produce more pineapples without decreasing the production of rum.
C. it will be producing on its production possibilities curve.
D. it will not be possible to produce more rum without decreasing the production of pineapples AND it will be producing on its production possibilities curve.
D. it will not be possible to produce more rum without decreasing the production of pineapples AND it will be producing on its production possibilities curve.
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A competitive market is in equilibrium. Then there is a decrease in demand and a decrease in supply. The equilibrium price ________, and the equilibrium quantity ________
A) rises; decreases B) perhaps changes but we can't say if it rises, falls, or stays the same; decreases C) falls; increases D) perhaps changes but we can't say if it rises, falls, or stays the same; increases E) rises; increases
Monetarists and new classical economists favor an active role of government in promoting low inflation and economic growth
a. True b. False Indicate whether the statement is true or false
Private property provides an incentive to
A. save, but it fails to provide an incentive to work. B. both work and save. C. neither work nor save. D. work, but it fails to provide an incentive to save.
Assume the real U.S. GDP in 1929 was $942 billion and the U.S. population was 122 million, and the real U.S. GDP in 1930 was $858 billion and the U.S. population was 123 million. From 1929 to 1930, the per capita real GDP
A. Decreased. B. Remained unchanged. C. Increased. D. Cannot be determined from the information given.