When an economy is producing inside its production possibility frontier,
A. it is efficient so long as it is producing what people want.
B. it must overcompensate by producing outside the curve to achieve efficiency.
C. production inefficiency occurs.
D. only technological advances will allow it to increase production.
Answer: C
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If inflation was zero percent, nominal interest rates would be:
A. larger than real interest. B. equal to real interest rate. C. at the optimal rate. D. smaller than real interest.
What particular characteristic do public goods and club goods have in common?
The two primary markets for savers to get funds to borrowers are the ______.
a. commodities market and retail market b. precious metals market and currency market c. stock market and bond market d. real estate market and consumer goods market
Given the demand curve in this graph, if this product or service were free, how much consumer surplus would the individual receive?
A. $0
B. $1.50
C. $5.00
D. $10.50