Along the portion of the consumption function that lies above the 45-degree line, saving is
A) positive.
B) negative.
C) equal to zero.
D) equal to consumption.
B
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The above figure shows the market for pizza. The market is in equilibrium when people learn that eating pizza helps prevent heart disease. What point represents the most likely new price and quantity?
A) A B) B C) C D) D E) E
Refer to Figure 7-2. The efficient equilibrium quantity is ________ thousand vaccinations
A) 200 B) 400 C) 600 D) > 600
A distribution of goods is inefficient:
a. only when an economy is producing inside its production possibility frontier. b. only when an economy is producing at the wrong point on the production possibility frontier. c. either when an economy is producing inside the production possibility frontier or when an economy is producing at the wrong point on the production possibility frontier. d. when the economy is producing at the optimal point on the production possibility frontier.
As an alternative to selling shares of stock as a means of raising funds, a large company could, instead,
a. invest in physical capital. b. use equity finance. c. sell bonds. d. purchase bonds.