A production point is said to be efficient if there is no way for the economy to produce more of one good without producing less of another
a. True
b. False
Indicate whether the statement is true or false
True
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One important factor that affects economic growth is
A) gold reserves. B) the rate of saving. C) which political party is in power. D) the number of workers in heavy industry.
If, in a competitive market, marginal benefit is less than marginal cost
A) the net benefit to consumers from participating in the market is less than the net benefit to producers. B) the government must force producers to raise prices in order to achieve economic efficiency. C) the output is greater than the equilibrium quantity. D) the output is less than the equilibrium quantity.
Suppose a small economy produces only HD TV sets. In year 1, 100,000 sets are produce and sold at a price of $1,200 each. In year 2, 100,000 sets are produced and sold at a price of $1,000 each. As a result:
A. Nominal GDP stays constant, while real GDP decreases B. Nominal GDP decreases, while real GDP stays constant C. Nominal GDP and real GDP both decrease D. Nominal GDP decreases, and real GDP decreases even more
The income and substitution effects are part of the reason why
A. the demand curve is downward-sloping. B. the supply curve is upward-sloping. C. the demand curve is upward-sloping. D. the supply curve is downward-sloping.