Production Possibilities Curve (PPC)
What will be an ideal response?
outlines all possible combinations of total output that could be produced, assuming a:
1. fixed amount of productive resources
2. given amount of technical knowledge
3. full and efficient use of resources
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Because S&Ls were FSLIC insured, they
a. were less encouraged to make risky investments b. were less likely to make questionable loans c. could not venture into speculative land deals d. were less inclined to be cautious about the quality of the loans they made e. were safer than with the FDIC
?Suppose Ripco owns the building from which it operates. If:
a. ?its usage of the building precludes it from renting to anyone else, there is an opportunity cost. b. ?the firm pays rent, there is an opportunity cost. c. ?the firm pays no rent, there is no opportunity cost. d. ?the firm does not rent the building to anyone else, there is no opportunity cost. e. ?the firm can use the building for other things, there is no opportunity cost.
Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. If policy makers decide to on a policy at Point t5 but it does not affect the economy until period t7, then the policy choice is likely to be
A. ineffective. B. inappropriate. C. optimal. D. none of the above.
When external costs are present,
A) competitive, unregulated markets are efficient. B) transaction costs will be high. C) a tax might be able to create efficiency. D) property rights have already been established.