Which of the following correctly describe an economy's potential output level?
a. The maximum output level that is sustainable given available resources, technology, institutional constraints, and production incentives.
b. The amount produced when there are surprises associated with the price level in an economy.
c. The amount produced when there are surprises associated with the unemployment level in an economy.
d. The maximum output level that is not sustainable given available resources, technology, institutional constraints, and production incentives.
a
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Suppose that Sandy can produce 10 economic reports or make 2 sales calls. Suppose Tim can produce 2 economic reports or make 1 sales call. Which of the following is CORRECT?
A) The opportunity cost for Sandy of producing one economics report is 1/5 of a sales call. B) The opportunity cost for Sandy of producing one sales call is 10 economics reports. C) The opportunity cost for Tim of producing one sales call is 1/2 of an economics report. D) The opportunity cost for Tim of producing one economics report is 2 sales calls.
At a Nash equilibrium, each player in a game is said to be doing as well as he can given the actions of his competitor
a. True b. False Indicate whether the statement is true or false
What are the two important programs in practice in America that strongly resemble a negative income tax?
What will be an ideal response?
The improvement in outcomes that occurs when specialized producers exchange goods and services is called:
A. absolute advantage. B. specialization. C. gains from trade. D. comparative advantage.