Refer to the diagram for athletic shoes. If the current output of shoes is Q 1 , then:
A. society would consider additional units of shoes to be more valuable than alternative uses
of those resources.
B. society would consider additional units of shoes to be less valuable than alternative uses of
those resources.
C. society would experience a net loss by producing more shoes.
D. resources are being allocated efficiently to the production of shoes.
A. society would consider additional units of shoes to be more valuable than alternative uses
of those resources.
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Traditional Keynesians tend to favor
a. monetary policy over fiscal policy because of the effectiveness of central banks. b. monetary policy over fiscal policy because it reduces interest rates.. c. fiscal policy over monetary policy because it doesn't impact interest rates. d. fiscal policy over monetary policy because of the liquidity trap. e. none of the above.
In a Bertrand model with differentiated products,
A) firms can set price above marginal cost. B) firms set price at marginal cost. C) price is independent of marginal cost. D) firms set price independently of one another.
Economic goods are defined as
A) tangible items only. B) services only. C) anything from which an individual derives satisfaction. D) any item which is available in sufficient quantity at zero price.
A middleman is a person who
a. specializes in arranging trades and selling, guaranteeing, and servicing items traded. b. acts as a middle person between the top management of a business firm and the hourly employees who actually produce the goods and services. c. adds to the seller's expense and the buyer's buying price without providing a service to either. d. levies a tax on private sector activity and uses the funds to support government activities.