The classic tradeoff between "guns and butter" states that when a society spends more on national defense, it has less to spend on consumer goods to raise the standard of living
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
If four quick oil change service companies agree to reduce the number of cars they service each month in an effort to raise the price for the service, this is an example of ________.
A) market division B) output restrictions C) bid suppression D) resale price maintenance
Which of the following is most closely associated with positive economics?
a. determining the impact of government spending on the actual level of total employment b. determining the best level of immigration into the country c. determining whether too many luxury goods are being produced d. determining whether the government should reduce poverty e. determining whether the government should alter income taxes in order to increase total employment
At her current level of consumption, Jess gets half as much marginal utility from an additional bagel as from an additional muffin. If the price of muffin is $2 each, then Jess is maximizing her utility if the price of a bagel is:
A. $2.00 B. $1.00 C. $1.50 D. $4.00
Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run?
A. the fact that the demand curve facing each wool producer is perfectly elastic B. the assumption that wool producers in the industry do not ?differentiate? their products C. the fact that wool producers are ?price takers? D. There is free entry into the wool industry.