Production under increasing opportunity costs can result from the two industries using factors of production in different combinations
Indicate whether the statement is true or false
TRUE
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Refer to Figure 4-3. If the market price is $2.50, what is the maximum number of ice cream cones that Kendra will buy?
A) 1 B) 2 C) 3 D) 4
Marketable government securities consists of Treasury bills,
A) Treasury notes, and U.S. savings bonds. B) Treasury notes, and Treasury bonds. C) Treasury bonds, and federal funds. D) U.S. saving bonds, and federal funds.
Why might a police officer not pull over someone speeding two miles over the speed limit?
A) The explicit costs of stopping the driver over are too high. B) The opportunity costs of stopping the driver are too high. C) The opportunity costs of topping he driver are too low. D) The explicit costs of stopping the driver are too low.