Think of the economy as a pie, where public choices influence both the size of the pie and how it is divided to various interests in society. Special-interest legislation makes the pie bigger, while legislation to create traditional public goods such as roads, schools, and the justice system leads to fights over the pie, causing some of it to fall on the floor and be lost
Indicate whether the statement is true or false
false
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A nation engaging in trade according to the Ricardian model will find its consumption bundle
A) inside its production possibilities frontier. B) on its production possibilities frontier. C) outside its production possibilities frontier. D) inside its trade-partner's production possibilities frontier. E) on its trade-partner's production possibilities frontier.
Natural resources:
A. are physical structures that sit on the earth, improving it and making it more productive. B. are production inputs that come from the earth. C. are natural talents people are born with that make them productive. D. None of these is true.
Which of the following is one of the main features of our modern economy that helps ensure against a repeat performance of the Great Depression?
A. Transfer payments B. Outsourcing C. Multiplier D. Personal income tax
Suppose the demand for good X is given by Qdx = 10 - 2Px + Py + M. The price of good X is $1, the price of good Y is $10, and income is $100. Given these prices and income, how much of good X will be purchased?
A. 115. B. 1,000. C. 515. D. None of the statements associated with this question are correct.