If an economy is operating at a point inside the production possibilities curve,
What will be an ideal response?
its resources are not being used efficiently.
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If an increase in the level of the money supply results in a proportionate increase in prices with no effect on any real variables, we say that
A) the Fisher relationship holds. B) money is neutral. C) money is superneutral. D) money is the most preferred store of value.
Economics can be described as the study of how people use ________ resources to satisfy ________ wants
A) unlimited; unlimited B) unlimited; limited C) limited; unlimited D) limited; limited
The circular flow model with government included would show that government:
A. Controls economic resources and sells them in the resource market B. Produces goods and services and sells them in the product market to generate net taxes C. Provides goods and services to businesses and households and pays for them with net taxes D. Obtains revenues in the product market and uses it to cover costs in the resource market
Rent control continues to survive despite its flaws because
A. economists generally favor it. B. it creates economic growth in a city. C. landlords like its simplicity. D. those not displaced by the policy are beneficiaries of the policy and vote to keep it.