Brett, who is a chef, divides his time between fishing and cooking meals. His production set is described by the equation , where is the number of salmon he catches and y the number of meals he cooks. If Brett catches 5 salmon and cooks 2 meals,
a. he is overusing his resources.
b. the result is economically efficient.
c. the result is economically inefficient.
d. he is achieving the best possible outcome.
C
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The cross elasticity between two goods is 2.5 . These goods are:
a. perfect complements. b. imperfect complements. c. unrelated. d. substitutes. e. inferior.
During the financial crisis of 2008, which company did not receive a loan from the Fed?
a. J. P. Morgan b. General Electric c. American International Group d. Bank of America
Demand-side inflation differs from supply-side inflation in which of the following ways?
A. Demand-side inflation has higher output; supply-side inflation has lower output. B. Demand-side inflation has lower output; supply-side inflation has higher output. C. Demand-side inflation is always followed by stagflation; supply-side inflation is always followed by demand-side inflation. D. Demand-side inflation has a self-correcting mechanism; supply-side inflation does not.
The market supply curve can be found by
A) Adding the quantities the firms could supply at a break-even price. B) Adding the supply response for all firms for a given set of prices. C) Looking at the quantity supplied in the previous period. D) None of the above.