Points outside the production possibilities curve represent combinations of products that are:
A. attainable only if the economy's resources are fully employed.
B. attainable only if the economy's resources are not fully employed.
C. attainable if the economy's resources are either fully employed or not fully employed.
D. unattainable.
Answer: D
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An efficient customer sorting rule is one in which
a. customers with high willingness to pay secure the discounted goods b. customers are rationed randomly between the discounted and full price goods c. no customer purchase below her willingness to pay d. customers with the lowest willingness to pay secure the discount goods e. brand loyalty allows the incumbent to retain its regular customers
According to rational expectations theory,
a. there is absolutely nothing government can do, even in the short run, to reduce the economy's unemployment rate. b. the government can use fiscal policy such as increased government spending or lower tax rates to reduce unemployment. c. a modern extension of Keynesian economics exists. d. discretionary fiscal policy is essential for prolonged growth. e. market participants can be fooled in the long run by monetary and fiscal policy rules.
Consumer surplus is the difference between:
a. what the consumer is willing to pay and what the consumer must actually pay to receive a good or service. b. the quantity of goods a consumer is willing to buy and the quantity of goods the consumer actually buys. c. what the producer is willing to receive and what the consumer must actually pay to receive a good or service. d. the quantity of goods a producer is willing to and the quantity of goods the consumer actually buys.
You have received your advanced degree in biochemistry with a specialty in recombinant DNA technology. Your colleagues wish to form a partnership to research adenovirus vectors. Your legal counsel advises you on the following aspects of a partnership, yet you tell her, based on your knowledge of economics, that you think one of the following points is INCORRECT.
A. The income of the partnership is treated as personal income and is subject only to personal taxation rates. B. An advantage of the partnership would be that it is relatively easy to form, almost as easy as forming a proprietorship. C. Partnerships often help reduce the costs of monitoring job performance in situations in which it is difficult to measure objectively. D. The personal assets of each partner should be safe and would not necessarily be at risk due to claims by financial institutions.