Answer the following statement true (T) or false (F)
1) Rational individuals may make different choices because their preferences and circumstances differ.
2) Choices entail marginal costs because resources are scarce.
3) The production possibilities curve shows various combinations of two products that an economy can produce when achieving full employment.
4) The production possibilities curve shows various combinations of two products that an
economy can produce when achieving full employment.
1) T
2) T
3) T
4) F
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A government, based upon its policy decisions, can determine the position and shape of the production possibilities frontier that the economy faces.
Answer the following statement true (T) or false (F)
The above figure shows the U.S. market for flip-flops. When there is no international trade, the U.S. price is ________ per flip-flop and the U.S. quantity is ________ flip-flops
A) $14; 300,000 B) $14; 500,000 C) $14; 700,000 D) $12; 700,000 E) $12; 300,000
Use the following balance sheet for the First Federal Bank to answer the next question.AssetsLiabilities + Net WorthReserves$100,000Checkable deposits$300,000Loans140,000Stock shares200,000Securities60,000 Property200,000 If the reserve requirement is 20%, this bank can safely expand its loans by a maximum of
A. $20,000. B. $100,000. C. $200,000. D. $40,000.
Answer the following statements true (T) or false (F)
1. The budget line shows the various incomes that an individual can earn from different jobs. 2. The fundamental economic problem faced by a society is that productive resources are so varied and versatile, that it is hard to decide what to do with them. 3. The resource category called "land" includes forests, animals, and water resources. 4. When economists talk about the capital resources in the economy, they are referring to the amount of money circulating in the economy.