Exhibit 21-1 Production possibilities curves
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In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. Suppose Nabia produces at point A on its PPC. How many units of wheat is the country able to produce?
A. 15.
B. 60.
C. 40.
D. 20.
Answer: D
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One possible solution to the problem of protecting a common resource is to convert that resource to a private good
a. True b. False Indicate whether the statement is true or false
Suppose an economist believes that the price level in the economy is directly related to the money supply, or the amount of money circulating in the economy. The economist proposes the following relationship: P=A×M • P=Price Level • M=Money Supply • A=A composite of other factors, including real GDP, that change very slowly over time. How might an economist gather empirical data to test the proposed relationship between money and the price level?
A. Unlike researchers in the hard sciences, economists cannot study complex relationships using data. B. An economist would look for data on past changes in the money supply, and note the resulting changes in the price level C. An economist would persuade the Federal Reserve to change the money supply to various levels, and observe the resulting changes in the price level. D. Economists do not usually develop theoretical models of the economy but only analyze summary statistics about the current state of the economy.
List three bogus arguments about the “burden of the debt,” and point out the errors in each of the arguments.
What will be an ideal response?
Ad valorem taxes
A. are based on income levels. B. are paid as a fixed percentage of a good's unit price. C. are not used in the United States. D. are accessed based on the costs of producing the goods or services.