An increase in production of one good will have zero opportunity cost only if the economy initially existed at a point inside the production possibilities curve
a. True
b. False
Indicate whether the statement is true or false
True
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If aggregate demand grows only slightly faster than potential GDP, then the economy will ________
A) experience economic growth with high inflation B) experience recession C) experience economic growth with low inflation D) be at a business-cycle peak
The following is an example of risk aversion
a. those applying for a well-paid job tend to be the most qualified b. more reckless drivers opt for cars with fewer safety devices c. the contractor with the lowest bid for a is under-qualified d. Initial Public Offerings (IPOs) seek investors when prospects look good
Among the factors contributing to externally induced cycles are all of the following except
a. changes in international exchange rates b. clustering of innovations c. the interaction of the multiplier and accelerator d. changes in consumer confidence e. population booms
In cartels, the reason that the monopoly output is unstable is due to the factors that are present in a prisoner's dilemma
a. True b. False Indicate whether the statement is true or false