An efficient allocation of resources requires that a product's price equal its average cost
a. True
b. False
Indicate whether the statement is true or false
False
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country A could potentially make would be:
A. (500 iPods, 500 tablets). B. (500 iPods, 400 tablets). C. (500 iPods, 300 tablets). D. (500 iPods, 200 tablets).
Suppose Trust Bank purchases government bonds worth $55 million. If the bank does not want to reduce its reserves, _____
a. it should start giving more loans b. it should stop giving new loans c. it should raise the discount rate d. it should lower the minimum required ratio
In 2014, China had accumulated $3.8 trillion worth of reserve assets. These $3.8 trillion entered into China's balance of payments in the:
a. Trade balance. b. Balance on goods and services. c. Financial Account. d. The total amount did not enter into China's balance of payments. Only changes enter the balance of payments.