Suppose a firm can estimate its demand with 100 percent accuracy. In this case, the value of the forecast is equal to ________.
A) zero
B) the actual profit the firm earns from having the forecast
C) the amount of profit the firm would lose from not having the forecast
D) infinity
C) the amount of profit the firm would lose from not having the forecast
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The "bubble concept," which is sometimes used by EPA in its pollution control programs, is designed to
A) capture pollutants and dispose of them safely. B) confine pollution within a narrow area. C) make the people who pollute the most the ones financially responsible for pollution control. D) reduce the cost of achieving pollution-reduction targets. E) restore control over the environment to state and local governments.
If the government purchases multiplier equals 2, and real GDP is $14 trillion with potential real GDP $14.5 trillion, then government purchases would need to increase by ________ to restore the economy to potential real GDP
A) $7.25 trillion B) $1 trillion C) $500 billion D) $250 billion
Refer to Figure 2-8. What is the opportunity cost of producing 1 ton of pineapples in Guatemala?
A) 1/2 of a ton of coconuts B) 1 1/3 tons of coconuts C) 2 tons of coconuts D) 180 tons of coconuts
Individuals, firms, and societies are limited in the amount of goods and services that they can produce. This is a direct result of:
A. unemployment. B. waste. C. irrational behavior. D. scarcity.