On this production possibilities curve, which point represents the highest production of military goods at an efficient level in the current economy?
a. A
b. B
c. C
d. D
c. C
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According to the quantity theory, in the long run, an increase in the growth rate of ________ leads to an increase in the ________
A) real GDP; inflation rate B) the quantity of money; growth rate of real GDP C) the quantity of money; inflation rate D) real GDP; growth rate of velocity
Unregulated natural monopolies:
A. never capture lowest costs per unit possible. B. can capture profits by restricting output. C. create no problems for policy-makers. D. are always protected by government policy.
An example of stimulus spending by the government might be:
A. increase in government purchases of new cars. B. the monthly payments a government agency makes to its employees. C. a cut in the government budget aimed at spurring private consumption. D. the FED engaging in open market sales of securities.
If total utility is positive, marginal utility must also be positive
Indicate whether the statement is true or false