In the above figure, what is autonomous consumption?
A. $2.0 trillion
B. $1.0 trillion
C. $0.0 trillion
D. $3.0 trillion
Answer: B
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If you want to have $50,000 in 5 years, how much would you need to put in your savings account now if the savings account pays 3 percent interest?
What will be an ideal response?
The law of diminishing marginal returns is the same as increasing returns to scale
a. True b. False Indicate whether the statement is true or false
Assume the US has a comparative advantage versus Brazil in producing large jets (LJs) while Brazil has a comparative advantage in producing small jets (SJs). The opportunity cost of producing another LJ is 2 SJ in the US and 4 SJ in Brazil. Without trade, the maximum number of LJs the US can produce is 60 and the maximum number of SJs the US can produce is 120. If the US and Brazil agree to trade at the rate of 1 LJ for 3 SJs, what is the maximum number of small jets that would be available in the US if the US produces all LJs and trades them all away to Brazil at the agreed upon rate of trade?
a) 20 b) 60 c) 120 d) 180 e) 360
Moral Hazard
A. is the fact that people will consume more health care when they pay only a percentage. B. is the fact that having insurance increases the demand for the good. C. is the fact that having insurance increases the demand for the good and it does not apply to health insurance. D. does not apply to health insurance.