What is a production set?
A production set is all possible combinations of goods and services that an economy can produce with its available resources.
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A bank run __________ possibly mushroom into a bank panic because the quality of a bank's portfolio of loans __________ made public information by bank examining agencies
A) can; is B) can; is not C) cannot; is D) cannot; is not
Continuing with the same vacation-insurance company from the preceding question, what vacation-day price(s) would be acceptable to both the family and the insurance company?
a. 3 or 4 b. 3,4 or 5 c. 3,4,5 or 6 d. 3,4,5,6 or 7
When a market is not in equilibrium:
A. there is neither excess supply nor excess demand. B. the economic motives of sellers and buyers will move the market to its equilibrium. C. a change in either supply or demand is required to reestablish equilibrium. D. government intervention is required to achieve equilibrium.
Which statement is true?
A. Comparative advantage and absolute advantage are identical terms. B. A country can have a comparative advantage without having an absolute advantage. C. The U.S. has a comparative advantage and an absolute advantage with nearly all of its trading partners. D. Trade cannot take place unless each trading partner has an absolute advantage in the production of the good or service that it is trading.