Refer to the information given in Table 16.6 below to answer the question that follows.
Table 16.6
Refer to Table 16.6. Assume that the marginal cost of hiring a police officer is $100. If A and B are the only two people in the society, the optimal number of police officers is
A. 1.
B. 2.
C. 3.
D. indeterminate from this information.
Answer: B
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A) changes in government rules and regulations B) capital controls C) changes in tax laws D) government red tape and corruption
Among the components of a 45-degree (or income) line are consumption and
a. investment b. inventories c. exports d. saving e. imports
The rapid speed with which the stimulus bill passed through both houses of Congress and was signed by the President could be used as an argument for
a. activist fiscal policy. b. activist monetary policy. c. expansionary fiscal policy. d. contractionary monetary policy.
Agreeing to iron your roommates shirts while she types up the paper you have written is an example of which of the following:
a. Barter b. Opportunity Cost c. Sunk Cost d. Absolute Advantage