When resources are misallocated, or allocated inefficiently,
A. market failure occurs.
B. then it must be the case that there is imperfect information in the market.
C. then there must be external costs or benefits in production.
D. then it must be the case that the good is a public good.
Answer: A
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In an economy with a fixed exchange rate, when the market forces try to change the exchange rate, the government:
A. must buy or sell its currency using its own reserve to bring equilibrium in the market to where it has "fixed" it. B. declares it can't change, and holds it constant. C. often has to deal with an unhappy domestic population who are constantly dealing with shortages or surpluses of their currency. D. None of these statements is true.
Which of the following is correct?
a. Monetarists believe there is no short-term link between changes in a nation's money supply and changes in expenditures. b. Monetarists believe there is an indirect link between changes in a nation's money supply and changes in expenditures. c. Keynesians believe there is a direct link between changes in a nation's money supply and changes in expenditures. d. Keynesians believe there is an indirect link between changes in a nation's money supply and changes in expenditures. e. None of the above.
As output rises, eventually the MPP of a resource will
A. rise. B. fall. C. become constant.
In the above table, average product is 30 tablets when
A. 3 workers are employed. B. 2 workers are employed. C. 4 workers are employed. D. 1 worker is employed.