Consider the production possibilities frontier displayed in the figure shown. A society should choose to produce:
A. at any point on the frontier rather than inside it.
B. at any point that produce some of each good.
C. at point C because it is the safest.
D. at point B because it represents the most the society can produce.
Answer: A
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In the above figure, Jill's opportunity cost of producing 1 gallon of bottled water is ________ of soda
A) 4 gallons B) 1/4 of a gallon C) 1 gallon D) 1/2 of a gallon E) 2 gallons
Randomization based on covariates is
A) not of practical importance since individuals are hardly ever assigned in this fashion. B) dependent on the covariances of the error term (serial correlation). C) a randomization in which the probability of assignment to the treatment group depends on one of more observable variables W. D) eliminates the omitted variable bias when using the difference estimator based on Yi = ?0 + ?1Xi + ui, where Y is the outcome variable and X is the treatment indicator.
Which of the following is most likely to increase the supply of corn?
a. The farm worker's union successfully negotiates a pay increase for corn harvest workers. b. The Surgeon General announces that eating corn bread contributes to baldness in men. c. Congress and the President eliminate subsidies formerly paid to corn farmers. d. Farmers that grow soybeans can also grow corn, and the price of soybeans drops by 75 percent.
Actual investment is the:
A. investment a firm makes into stocks and bonds in order to generate profit. B. amount that firms really allocated to new capital resources and inventory accumulation. C. spending households engage in based on forecasted budget. D. amount that firms actually allocate to inventory accumulation.