Which of the following is definitely true if the economy is in macro equilibrium?
A. The price level is optimal, but the output level may not be
B. The output level is optimal, but the price level may not be
C. The price level and the output level are both optimal
D. The price level and the output level may or may not be optimal.
D. The price level and the output level may or may not be optimal.
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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.
The AD curve shows the various amounts of real output that people are willing and able to
A) buy at different income levels. B) buy at different price levels. C) sell at different profit levels. D) sell at different price levels. E) none of the above
What is an entitlement?
What will be an ideal response?
The single-tax movement, headed by Henry George, refers to the idea that
A. taxes on rent are less costly to administer than other taxes. B. rent is a surplus that can be taxed without distorting resource allocation. C. rent should not be taxed because it is a free gift of nature. D. rent is based on a derived demand and should not be taxed.