At the current point of production on a nation's production possibilities frontier, the marginal benefit of a slice of pizza is 500 tacos per slice of pizza while the marginal cost of producing a slice of pizza is 750 tacos per slice of pizza
To be allocatively efficient, what should be done?
The marginal benefit of a slice of pizza is less than its marginal cost. Therefore to be allocatively efficient, less pizza and more tacos should be produced.
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A special interest issue is one that:
a. provides large private benefits and large social benefits b. provides small private benefits and large social benefits. c. provides large benefits to each of a small number of people and small costs to each of a large number of people. d. provides small benefits to each of a small number of people and large costs to each of a large number of people.
The Federal Reserve District bank charged with buying and selling United States government securities is the __________ Bank.
Fill in the blank(s) with the appropriate word(s).
What is the principal reason that economists give for the existence of deflationary and inflationary gaps?
A. Wages are flexible in the short run. B. Wages are flexible in the long run. C. Wages are fixed in the long run. D. Wages are fixed in the short run.
If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.