All points inside the production possibilities curve indicate
A. the law of increasing relative cost.
B. inefficiency in production.
C. a lack of sufficient supply.
D. the law of decreasing relative cost.
Answer: B
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A general medium of exchange tends to
A) reduce transaction costs. B) make bartering more effective. C) reduce the incentive to specialize and pursue one's comparative advantage. D) accomplish all of the above. E) accomplish none of the above.
Management needs more _________ who participate in community action programs and families, contribute to scientific, social or economic advances and improve human lives
a. Followers b. Leaders c. Social workers d. Muckrakers
The idea of horizontal equity in taxation implies that
A. equally situated individuals should be taxed equally. B. unequally situated individuals should be taxed unequally. C. benefits should be given first to those individuals who need them most. D. the greatest tax burden should be borne by the wealthiest individuals.
Table 10-1 Aggregate Quantity Aggregate Quantity ? Demanded Supplied Price (billions) (billions) Level $3500 $2900 65 3400 3000 75 3350 3150 90 3250 3250 110 3100 3400 130 In Table 10-1, if full employment occurs at $3,400 billion, then
A. the economy experiences a recessionary gap of $75 billion. B. the economy experiences a recessionary gap of $150 billion. C. the economy experiences an inflationary gap of $75 billion. D. the economy experiences an inflationary gap of $150 billion.