Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same.
B. at any of the labeled points, as all of the points represent an efficient allocation of resources.
C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced.
D. indeterminate from this information, as we don't have any information about the society's desires.
Answer: D
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An outright purchase of government securities by the Fed
A) permanently increases bank reserves. B) temporarily increase bank reserves. C) permanently reduces bank reserves. D) temporarily reduces bank reserves.
The efficient level of pollution abatement is where:
A. the marginal benefit of abatement is greater than its marginal cost. B. the marginal benefit of abatement is less than its marginal cost. C. the marginal benefit of abatement is equal to its marginal cost. D. None of these
If a good is a luxury, the income elasticity of demand must be
A. positive and greater than 1. B. zero. C. negative. D. merely positive (not necessarily greater than 1).
Lydia was born with an aptitude for composing music. This aptitude is an example of
A. property. B. natural capital. C. human capital. D. a compensating differential.