Economic policies are effective at changing output when
A. the aggregate supply curve is vertical.
B. the unemployment rate is at the natural rate.
C. the economy is not producing at capacity.
D. the economy is producing at its potential output.
Answer: C
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Being first only works
A) if accounting profits are earned in the first year. B) if the entrepreneur has the working capital of a large firm. C) in a winner take all situation. D) all of these choices.
Based on the figure below, what would be the opportunity cost in terms of wings when producing 20 more pizzas if the economy is efficiently producing 150 wings and 50 pizzas?
What will be an ideal response?
The perfect competitor can make a profit
A. only in the long run. B. only in the short run. C. in both the long run and the short run. D. in neither the long run nor the short run.
Which of the following best describes the adverse selection problem in health care?
A. The poor are exposed to medical disasters because they cannot afford to pay for insurance. B. Healthier people are less likely to buy health insurance because they are less likely to need it. C. The people who are selected for jobs with health insurance benefits are often the people who least need the health insurance. D. People don't know how much they will need to pay for health care in old age, adding to the risks of old age.