What is the opportunity cost of moving from point B to point C?
Hypothetical Production Schedule for Two-Product Economy
2 milk shakes
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Consider that you are a government economist asked by a state legislature to apply excise taxes to a variety of goods sold in your state. You know you want to minimize the excess burden of taxation so you apply the Ramsey Rule
This means that you tell the legislature to _____. a. set the tax rates proportional to the elasticities of demand for each good b. set the tax rates in inverse proportion to the elasticities of demand for each good c. set the tax rates proportional to the elasticities of supply for each good d. set the tax rates in inverse proportion to the elasticities of supply for each good
Which of the following increases U.S. aggregate demand?
a. a lower price level, increasing citizen's real wealth b. a lower price level, reducing interest rates c. a lower price level, increasing exports and decreasing imports d. None of the above
If a good produced this quarter goes into inventory, then it is included in this period's GDP. If it is sold in the next quarter, it will have no effect on GDP
a. True b. False Indicate whether the statement is true or false
Briefly explain how most economists feel about a total equal redistribution of income.
What will be an ideal response?