In the absence of trade, a country's consumption possibilities are:
A. More than its domestic production possibilities.
B. Equal to its domestic production possibilities.
C. Less than its domestic production possibilities.
D. Unlimited, since the terms of trade are not a constraint.
B. Equal to its domestic production possibilities.
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Most economists accept the need for a required pension system because
A. economists believe that saving is good for the soul. B. people will save less than is optimal knowing that they can rely on welfare, and people may not have the information necessary to calculate their correct level of savings. C. people will save less than is optimal knowing that they can rely on welfare. D. people may not have the information necessary to calculate their correct level of savings.
Refer to Figure 2-8. Suppose Vidalia is currently producing 20 dozen orchids per period. How many roses is it also producing, assuming that resources are fully utilized?
A) 30 dozen roses B) 50 dozen roses C) 100 dozen roses D) 150 dozen roses
Use the above table. What will the output level be when external costs are internalized with a tax?
A. 4 B. 5 C. 6 D. 7
What is meant by the term business cycle as described by economists?
What will be an ideal response?