If a firm or a nation desires to maximize its output, each productive assignment should be carried out by those persons who...
What will be an ideal response?
have a comparative advantage in the productive activity
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Which statement is true?
A. There was a great deal of stagflation in the 1960s. B. We had full employment for most of the 1980s. C. We have had twelve recessions since the beginning of 1945. D. None of the choices are true.
When the inflation rate is zero, the
A) real interest rate is greater than the nominal interest rate. B) real interest rate is less than the nominal interest rate. C) nominal interest rate is zero. D) real interest rate equals the nominal interest rate.
Which of the following influences household saving?
I. The real interest rate II. Disposable income III. Expected future income A) I only B) I and II C) I and III D) I, II, and III
Socially inefficient outcomes may occur in markets where there are: a. negative externalities present
b. asymmetric information problems present. c. positive externalities present. d. any of the above.