The production possibilities frontier shows the opportunity cost of one good as measured in terms of the other good
a. True
b. False
Indicate whether the statement is true or false
True
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You are the manager of a monopoly that faces a demand curve described by P = 80 ? 5Q. Your costs are C = 10 + 5Q. The revenue-maximizing output is:
A. 2.5. B. 8. C. 5. D. None of the answers is correct.
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
If Year 1 is the base year, the real GDP of Year 2 is
A) $800. B) $1050. C) $1900. D) $2400.
The federal government has major assistance programs aimed at providing all of the following goods, except one. Which is the exception?
a. housing b. energy c. school lunches d. clothing e. food