Some authors claim that any point not on the frontier cannot be best. What is their reasoning to support this?
a. A point inside the frontier implies that society is not facing up to the problem of scarcity.
b. A point inside the frontier limits growth, and growth is always a goal worth pursuing.
c. A point inside the frontier represents inflation, and inflation is a dangerous situation.
d. A point inside the frontier results in fewer goods, and more is always better.
e. A point inside the frontier is inefficient, and represents wasted resources.
e
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As a percentage of GDP, the national debt consistently
A. fell from 1950 until 1990. B. fell from 1950 to 1975. C. rose from 1950 to 1960, but not thereafter. D. rose from 1950 to 1975.
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.
The price effect of a price decrease by a monopolist refers to:
A) the loss in revenue due to the price reduction. B) the increase in sales due to the price reduction. C) the increase in revenue because of an increase in sales. D) the decrease in the demand for labor due to the lower price of the final product.
In Maslow's Hierarchy of Needs, what is the level that is least likely to be achieved?
a. Physiological b. Safety and security c. Belongingness d. Self-actualization