A situation in which the price charged is greater than society's opportunity cost would lead to
A. marginal cost pricing.
B. too little being produced.
C. an efficient amount being produced.
D. too much being produced.
Answer: B
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Which of the following information about fiat money is false? Fiat money
A) has little to no value except as money. B) serves as a medium of exchange. C) is backed by gold. D) is authorized by a central bank or governmental body.
If the spending multiplier is 1.2, then a $100 billion increase in government spending will increase private sector spending by
A. $100 billion. B. $20 billion. C. $120 billion. D. $83.3 billion.
The government of a DVC may purposely cause inflation because:
A. a rapid rate of inflation attracts private foreign capital into a DVC. B. there is conclusive evidence that inflation discourages people from having large families. C. this will strengthen the nation's position in international markets. D. inflation works like taxation in that it may release resources from consumption so that they can be invested.
Which of the diagrams illustrate(s) the effect of a decrease in incomes on the market for secondhand clothing?
A. A and C.
B. A only.
C. B only.
D. C only.