Consider two straight-line PPFs. They have the same vertical intercept, but curve I is flatter than curve II. The opportunity cost of producing the good on the horizontal axis
What will be an ideal response?
is greater along curve II.
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Financial instruments whose payoffs are linked to previously issued securities are called
A) grandfathered bonds. B) financial derivatives. C) hedge securities. D) reversible bonds.
Involuntary exchanges, such as robbery,
a. represent potential Pareto improvements b. are positive externalities c. are not Pareto improvements d. are antitrust violations e. may be Pareto improvements
A nation's saving rate is not a primary determinant of its long-run economic prosperity
a. True b. False Indicate whether the statement is true or false
Consider the following game. You roll a six-sided die and each time you roll a 6, you get $30. For all other outcomes you pay $6. Since the expected value of this game is $0, the game is called a(n)
A. fair bet. B. even game. C. zero sum game. D. gamble.