Based on the production function in the above figure, which of the following is an attainable combination of labor and real GDP?
i. 300 billion hours of labor and real GDP of $20 trillion
ii. 300 billion hours of labor and real GDP of $8 trillion
iii. 100 billion hours of labor and real GDP of $12 trillion
A) i only
B) ii only
C) iii only
D) ii and iii
E) i and ii
B
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Due to the existence of the FDIC, banks
A) have not changed their behavior even with the existence of insurance. B) are no longer concerned about net worth. C) become more cautious in making loans. D) may make riskier loans knowing that their depositors are insured.
Inefficient outcomes can arise in markets for public goods because:
A) too much of an exclusive good is produced. B) too little of an exclusive good is produced. C) too much of a nonexclusive good is produced. D) too little of a nonexclusive good is produced.
An example of a cooperative game would be
A) oligopoly. B) monopolistic competition. C) a cartel. D) perfect competition.
As prices rise, people will buy fewer goods and services because:
a. the interest rate has declined. b. aggregate demand has increased. c. the purchasing power of the fixed quantity of money has declined. d. the income of households has increased.