All points on the production possibilities curve represent efficient levels of production
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 4.2. The game described in the payoff matrix is an example of a(n) ________ game
A) prisoner's dilemma B) pure coordination C) assurance D) battle of the sexes
Which of the following is NOT a normative statement?
A) People buy more of a good or service when its price falls. B) The distribution of income is fair. C) The government ought to provide health care to everyone. D) Corporations should be more socially responsible.
In which market should you begin your analysis if immigration of low-skilled workers increases?
a. Foreign exchange market, with a shift in the demand for domestic currency b. Real loanable funds market, with a shift in the demand for real loanable funds c. Foreign exchange market, with a shift in the supply of domestic currency d. Real goods market with, a shift in aggregate supply e. Real loanable funds market, with a shift in the supply of real loanable funds
DeShawn has spent $600 purchasing and repairing an old fishing boat, which he expects to sell for $900 once the repairs are complete. DeShawn discovers that, in addition to the $600 he has already spent, he needs to make an additional repair, which will cost another $400, in order to make the boat worth $900 to potential buyers. He can sell the boat as it is now for $400 . What should he do?
a. He should sell the boat as it is now for $400. b. He should keep the boat since it would not be rational to spend $1,000 on repairs and then sell the boat for $900. c. He should complete the repairs and sell the boat for $900. d. It does not matter which action he takes; the outcome is the same either way.