Which of the following statements is true?
A) In a world of efficiently used scarce resources, more of one good necessarily means less of some other good.
B) The law of increasing opportunity costs assumes that all people have the same ability to produce goods.
C) Efficiency implies that it is impossible to get more of one good without getting less of another.
D) Even if a country has unemployed resources, it can still be operating on its production possibilities frontier (PPF).
E) a and c
E
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Economists consider an economy to be at "full employment" when
A) the unemployment rate equals the natural rate of unemployment. B) there is no structural unemployment. C) there is no frictional unemployment. D) there is only a small amount of cyclical unemployment.
The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $400, what is the rent?
A) $800 B) $600 C) $400 D) None of the above answers is correct.
If the price of milk increased by 5 percent because of an increase in the demand for milk, and the quantity of milk supplied increased by 7 percent
A) the supply curve of milk has shifted rightward. B) the price elasticity of supply of milk is greater than one. C) milk is more of a luxury than a necessity. D) milk is more of a necessity than a luxury.
A rapid increase in the availability of credit to previously underserved borrowers is likely ________
A) to result from financial liberalization B) to improve the allocation of capital C) to confirm the merits of microcredit D) to result from deleveraging