If an economy is being "productively efficient," then that means the economy is:
A. Producing the products most wanted by society
B. Fully employing all economic resources
C. Maximizing the returns to factors of production
D. Using the least costly production techniques
Answer: D
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When ________ changes, the supply of loanable funds curve shifts
A) the price level B) "animal spirits" C) people's expected future income D) the expected rate of profit E) investment
Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. Which of the following statements is TRUE?
A) Under both the capture theory and the share-the-gains, share-the-pain theory profits will decrease. B) An increase in price will occur quicker in the share-the gains, share-the-pain theory than the capture theory. C) An increase in price will occur quicker in the capture theory than the share-the-gains, share-the-pain theory. D) In the capture theory there will be an increase in price but not in the share-the-gains, share-the-pain theory.
All of the following are examples of demand shocks, except one. Which is the exception?
a. A spontaneous decrease in money demand b. A tax increase c. A contraction of the money supply by the Fed d. An increase in the price level e. A reduction in government spending
When a product depicted on the horizontal axis of a typical indifference curve model of behavior is taxed
A. the budget line becomes flatter. B. all the indifference curves of the consumer become steeper. C. the indifference curve of the consumer shifts right. D. the budget line becomes steeper.