An important reason why economies at an early stage of development tend to operate inefficiently is
A) they tend to be dominated by the agricultural sector, where productivity is usually low.
B) they tend to have authoritarian governments that stifle innovation.
C) they tend to be plagued by superstitious beliefs that stifle innovation.
D) the high transactions costs associated with barter.
D
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Refer to Table 2-18. What is Minnie's opportunity cost of making an umbrella?
A) 1/10 of a hat B) 1/4 of a hat C) 4 hats D) 40 hats
Which of the following is the official policy-making body of the Federal Reserve System?
a. Federal Advisory Council b. The U.S. Treasury c. The Federal Open Market Committee d. The Board of Governors e. The Federal Reserve district banks
When the price of gasoline is such that the quantity of gasoline demanded just equals the quantity of gasoline supplied, we say that the market is
a. in equilibrium b. in distress c. in disequilibrium d. in need of change e. in dire straits
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C