Consider two points on the PPF: point A, at which there are 10 apples and 20 pears, and point B, at which there are 7 apples and 21 pears. If the economy is currently at point A, the opportunity cost of moving to point B is
A) 1 pear.
B) 7 apples.
C) 3 apples.
D) 21 pears.
C
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________ occurs when actions taken by one party to a transaction are different from what the other party expected at the time of the transaction
A) Adverse selection B) Risk aversion C) Moral hazard D) Fraud
When an investment bank ________ securities, it guarantees a price for a corporation's securities and then sells them to the public
A) underwrites B) undertakes C) overwrites D) overtakes
Productivity is defined as the
a. amount of goods and services produced from each unit of labor input. b. number of workers required to produce a given amount of goods and services. c. amount of labor that can be saved by replacing workers with machines. d. actual amount of effort workers put into an hour of working time.
The government can raise tax revenue and increase total economic surplus by taxing:
A. goods that generate positive externalities. B. goods whose supply and demand curves are highly elastic. C. luxury goods that are primarily consumed by wealthy individuals. D. goods that generate negative externalities.