The "big tradeoff" refers to
A) producing capital goods instead of consumable goods.
B) marginal benefit versus marginal cost.
C) efficiency and fairness.
D) taking an economics course instead of some other course.
E) using market prices rather than a command system to allocate resources.
C
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In monopolistic competition, when firms make an economic profit
A) the existing firms continue to make an economic profit in the long run because of product differentiation. B) new firms enter the industry so that the price falls and the economic profit eventually falls to zero. C) new firms enter the industry so that output decreases and the economic profit increases. D) new firms enter the industry so that output increases and the economic profit increases.
If the penalty on sellers of an illegal good is less than the penalty on buyers of an illegal good, then supply of the good will ________ by ________ demand and the price of the good will ________
A) increase; more than; increase B) decrease; more than; decrease C) decrease; less than; decrease D) decrease; the same amount as; remain the same
A characteristic of the unemployment rate is that ________
A) it typically goes up in a recession B) it typically goes down in a boom C) it is not clear whether it is a leading or a lagging indicator D) all of the above E) none of the above
At low levels of employment, the Keynesian aggregate supply curve:
a. tilts downward to the right. b. tilts upward to the right. c. is vertical. d. shows a constant price level. e. shows a rising price level.