Refer to the accompanying figure. This economy would be operating at point B if:
A. resources that are better-suited to making movies were being used to make milk, while resources that are better-suited to making milk were being used to make movies.
B. it was operating efficiently.
C. the opportunity cost of making milk were higher than the opportunity cost of making movies.
D. the opportunity cost of making movies were higher than the opportunity cost of making milk.
Answer: A
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Total costs:
A. are fixed costs plus variable costs. B. include explicit and implicit costs. C. increases as the firm increases output. D. All of these are true.
Income per person in the United States is approximately ____ that of Sierra Leone, Malawi, and Niger, three of the world's poorest countries
a. the same as b. double c. ten times d. fifty times
Which of the following is not correct?
a. The slope of a line will be a small positive number for a fairly flat upward-sloping line. b. The slope of a line will be a large positive number for a steep upward-sloping line. c. The slope of a line will be a negative number for a downward-sloping line. d. The slope of a line will be infinite for a horizontal line.