The role that prices play in distributing scarce goods and services to those consumers who value them the most highly is known as the ________ function of price.
A. multiplicative
B. rationing
C. equilibrium
D. allocative
Answer: B
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The amount by which the federal government's annual expenditures exceed its annual receipts is the
A) federal debt. B) federal government budget deficit. C) federal government budget surplus. D) federal profit.
As an economy produces more of one of the goods on a bowed out production possibilities frontier, what happens to the opportunity cost of producing the good?
A) It remains constant. B) It decreases. C) It increases. D) It might increase, decrease, or remain constant depending on how much people value the additional units of the good. E) None of these depicts what happens to opportunity cost.
A bond is a(n):
A. claim to partial ownership of a firm. B. agreement issued by a financial intermediary linking savers and investors. C. regular payment made to owners of a firm. D. legal promise to repay a debt.
Assume the total product of three workers is 120 and the total product of four workers is 160. The average product of four workers is ________, and the marginal product of the fourth worker is ________.
A. 40; 40 B. 10; 40 C. 30; 10 D. 160; 40