The production possibilities frontier illustrates
A) the maximum amount of inputs used to produce a particular output.
B) the minimum amount of inputs used to produce a particular output.
C) the maximum combination of two goods that can be produced with a given set of resources.
D) the minimum combination of two goods that can be produced with a given set of resources.
E) none of the above.
C
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If the quantity supplied of money exceeds the quantity demanded of money, people will ________ bonds which will cause bond prices to ________ and the nominal interest rate to ________ until the quantity demanded and quantity supplied of money are equal.
A. sell; fall; fall B. sell; rise; fall C. buy; fall; rise D. buy; rise; fall
Price and quantity in Bertrand and Cournot models
A) are the same. B) are different. C) might be the same depending on whether the products are identical or differentiated. D) are the same as in a duopoly.
Which of the following statements is true?
A) Keynes believed wages are inflexible downward but prices (of goods and services) are flexible. B) Keynes believed an economy could get stuck in a recessionary gap. C) Keynes originated the idea of efficiency wages. D) Keynes believed the economy is self-regulating. E) b and c
Which of the following is not a characteristic of monopolistically competitive firms in the long run:
A. there is no deadweight loss. B. firms charge a price above marginal cost. C. each firm maximizes profits. D. firms earns zero profits