When aggregate economic activity is declining, the economy is said to be in
A) a contraction.
B) an expansion.
C) a trough.
D) a turning point.
A
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Which of the following is an implication of the Coase Theorem?
A) Bargaining cannot lead to an efficient allocation of resources. B) Government intervention is not always necessary to solve externality problems. C) Negotiation leads to an efficient outcome if transaction costs are high. D) Taxation leads to an efficient allocation of resources regardless of who holds the property rights.
Refer to Figure 10-9. If the consumer has $240 to spend on DVDs and CDs, what is the price of a CD if the budget constraint is BC2?
A) $8 B) $10 C) $20 D) $40
Which of the following is correct?
a. Once adjustment is made for inflation, the prices of most natural resources have been about steady or falling. b. Technological progress has allowed us to substitute renewable resources for some nonrenewable resources. c. Technological progress has made once-crucial natural resources less necessary. d. All of the above are correct.
Suppose that goods A and B are close substitutes. If the price of good A falls, then we would expect an
What will be an ideal response?