Which of the following is correct?
a. Efficiency deals with the size of the economic pie, and equality deals with how fairly the pie is sliced.
b. Equality can be judged on positive grounds whereas efficiency requires normative judgments.
c. Efficiency is more difficult to evaluate than equality.
d. Equality and efficiency are both maximized in a society when total surplus is maximized.
a
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The wealth effect is another term for the
A) the interest rate effect. B) the real-balance effect. C) substitution effect. D) the indirect effect.
Comparative advantage implies that you
A) can produce more units of a good or service than another. B) can produce a good or service at a lower opportunity cost. C) can produce goods with more capital resources. D) can produce goods with more human resources.
With regard to international trade,
A. Some countries do not have a comparative advantage in producing anything. B. The market mechanism determines the terms of trade. C. Rich countries benefit at the expense of poor countries. D. The production possibilities exceed the consumption possibilities.
The tool most frequently used by the Fed to change the money supply is changing the required reserve ratio.
Answer the following statement true (T) or false (F)