Refer to the accompanying figure. This economy would be operating at point B if:
A. the opportunity cost of making milk were higher than the opportunity cost of making movies.
B. the opportunity cost of making movies were higher than the opportunity cost of making milk.
C. it was operating efficiently.
D. resources that are better-suited to making movies were being used to make milk, while resources that are better-suited to making milk were being used to make movies.
Answer: D
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Daring Dora holds 90% of her assets in high-technology stocks, earning 12%, and 10% in long-term government bonds, earning 6%. The expected return on her portfolio
A) is 6%. B) is 9%. C) is 11.4% D) is 12%. E) cannot be determined without knowing what the dollar value of her assets is.
The civilian labor force includes only the employed
a. True b. False Indicate whether the statement is true or false
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; decrease C. increase; increase D. decrease; decrease
Answer the following statement(s) true (T) or false (F)
1. A normative criteria is a way of balancing benefits against costs. 2. Consumer's surplus equals the total value that the consumer places on his purchases minus the amount he actually paid. 3. A consumer's demand curve for pizza is identical to his total value curve for pizza. 4. Market demand always represents marginal value. 5. Social or welfare care is consumer surplus minus producer surplus.