One reason more sport utility vehicles (SUVs) are driven in the United States than in Europe is
A) different marginal rates of substitution.
B) different marginal rates of transformation.
C) the United States hasn't had a recession since 2000-2001.
D) Either A or B
D
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The reason economists consider monopoly to be socially undesirable is that monopolists:
A. can charge any price they want. B. produce less than the socially optimal level of output. C. earn too much economic profit. D. exploit the inelastic nature of demand.
What does NOT occur in a fully employed economy?
A. Cyclical unemployment B. Discouraged workers C. Frictional unemployment D. Structural unemployment
The actions of speculators make the speculators better off, but they necessarily make the rest of society worse off
Indicate whether the statement is true or false
Suppose we switch the base year from 2000 to 2008. This change in the base year will cause
A) nominal GDP in every year to increase. B) nominal GDP in every year to decrease. C) both nominal and real GDP in every year to decrease. D) real GDP in every year to decrease. E) none of the above