Most economists agree that the best rate of inflation for a stable economy would be around:
A. zero.
B. two to three percent.
C. five to six percent.
D. seven percent.
B. two to three percent.
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In which year did the United States account for half the world's manufacturing output?
A. 1925 B. 1945 C. 1965 D. 1985
Refer to the table above. The farmer began to experience diminishing returns after applying how many bags of fertilizer?
A) 1 B) 2 C) 3 D) 4
Economic costs of production differ from accounting costs in that
A) economic costs include expenditures for hired resources while accounting costs do not. B) accounting costs are always larger than economic cost. C) accounting costs include expenditures for hired resources while economic costs do not. D) economic costs add the opportunity costs of a firm using its own resources while accounting costs do not.
The substitution effect measures
A) the responses of quantities to changes in the relative prices of goods. B) the responses of relative prices to changes in the demand for goods. C) how two goods can be used for the same purpose. D) the responses of quantities to changes in the relative qualities of goods.