An optimum that occurs as a corner solution
A) includes only one good.
B) cannot be an equilibrium.
C) cannot exhaust the budget constraint.
D) includes the exact same amounts of each good.
A
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If full employment GDP is $500 billion greater than equilibrium GDP and there is a deflationary gap of $100 billion, how much is the multiplier?
What will be an ideal response?
Cameron can spend the afternoon playing golf, driving his boat, or cleaning his house. Although he enjoys golf, he sometimes becomes frustrated when playing. He decides to enjoy a more relaxing afternoon on his boat. Cameron never thought about cleaning the house but did give golf some serious consideration. Cameron's opportunity cost of taking his boat out was:
A. a dirty house from deciding not to clean it. B. the enjoyment he would have gotten from playing golf. C. a dirty house and not playing golf. D. enjoying a relaxing day on the lake.
If you are told that in a given year the real growth rate is 7% with inflation and population growth rates of 2% and 1.2% respectively, then nominal growth rate of GDP per capita is:
A. 3.8%. B. 5.0 %. C. 5.8%. D. 7.0 %.
An oligopoly is a market
A. with few buyers. B. with one buyer. C. dominated by a few sellers. D. under the control of a few politically powerful individuals.