What is the intuition that an expansion of an individual's budget set represents a gain?
A) More options are preferred to less.
B) Money is the root of all happiness.
C) Information is power.
D) Scarcity is avoidable with prosperity.
A
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Residents of the developing American colonies lived _______ lives compared to people living in the advanced countries of that time because ________
a. better; of favorable protections from England b. better; of high levels of output per worker. c. worse; of unfavorable taxation d. worse; of the inaccessibility of both capital and finished machine goods.
According to the quantity equation, the price level would change less than proportionately with a rise in the money supply if there were also
a. either a rise in output or a rise in velocity. b. either a rise in output or a fall in velocity. c. either a fall in output or a rise in velocity. d. either a fall in output or a fall in velocity.
The production possibilities curve bows outward because
A. opportunity costs are decreasing as the production of a good increases. B. resources are of uniform quality. C. opportunity costs are increasing as the production of a good increases. D. opportunity costs are fixed as the production of a good increases.
Economic Profit exists whenever
A. a firm makes more than its competitors. B. a firm makes even one penny. C. A firm makes enough, so that it is required to pay taxes. D. a firm makes more than the minimum required to maintain the incentive to remain in the industry.