The price of a goods falls and you discover that you can eat more of the goods because they are cheaper than other goods
a. surplus efficiency.
b. latent efficiency.
c. demand efficiency.
d. production efficiency.
e. none of the above
Answer is d. production efficiency.
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Economists make assumptions because
a. they need to incorporate value judgments into their models. b. analysis without assumptions would be impossibly complex. c. they always have imperfect information about reality. d. assumptions are the final product of careful economic analysis. e. assumptions allow economists to ignore things that they cannot explain.
The United States is an example of a mixed economy
a. True b. False Indicate whether the statement is true or false
Which of the following is not a monetary policy tool of the Fed?
A) changing the required reserve ratio B) changing the discount rate C) setting the price level and the market rate of interest D) conducting open market operations
If the demand curve facing a firm is perfectly elastic, then:
A. it can increase its total revenue by lowering the price of its product. B. its marginal revenue will equal price. C. its marginal revenue schedule decreases twice as fast as the demand curve. D. its marginal revenue schedule will decrease at an increasing rate.