In the above table, the production of 3 pizzas and 80 cases of soda is
A) impossible unless more resources become available or technology improves.
B) feasible but would involve unemployed or misallocated resources.
C) possible only if the economy produces with maximum efficiency.
D) possible only if there is inflation.
A
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Bank X had a reputation for asking few questions when it provided loans. Five years later, the majority of the loans were not repaid. This is because the bank had failed to address the
A) moral hazard problem. B) free-rider problem. C) contrary selection problem. D) adverse selection problem.
Suppose a monopolist has zero marginal cost. If he faces a market demand curve with constant price elasticity of -2, the profit maximizing output level approaches infinity.
Answer the following statement true (T) or false (F)
All of the following trends and characteristics of American population growth occurred from Independence to the Civil War except
(a) The size of the average family was increasing. (b) Populations living in urban places increased. (c) There was extensive settlement in rural areas. (d) Growth was very rapid.
Assume there is an increased demand in the United States for Australian wines. If all other factors are held constant, this will result in
A) an increase in the U.S. dollar exchange rate for Australian dollars. B) an appreciation of the U.S. dollar. C) a movement along the demand curve for Australian wine. D) a decrease in the par value of the Australian dollar.