Which of the following cannot be determined from a nation's position relative to its production possibilities frontier?
a. whether it is producing efficiently
b. whether it has unemployed resources
c. the opportunity cost of each good illustrated
d. the society's relative preferences regarding each good illustrated
e. the price of each good illustrated
E
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Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. Equilibrium income is
A) 40. B) 50. C) 250. D) 400.
The famous historical example of the commitment strategy used by Cortes against the Aztecs is sometimes referred to as:
A. "burning your boats." B. "burning your bridges." C. "friendly fire." D. "putting all your eggs in one basket."
In long-run equilibrium,
a. perfectly competitive firms in a decreasing-cost industry can earn economic profits b. perfectly competitive firms in an increasing-cost industry can earn economic profits c. perfectly competitive firms in a constant-cost industry can earn economic profits d. perfectly competitive firms can earn only normal profits e. no entry occurs in an increasing-cost perfectly competitive industry
Refer to the accompanying figure.
Based on the figure, the income-expenditure multiplier in the economy illustrated equals:
A. 1,000 B. 0.75 C. 4,000 D. 4