Is increased production of a good beneficial to society?
a. Yes, because scarcity is such an overriding concern.
b. Yes, because more is always better.
c. Maybe, it depends on what is foregone.
d. No, because increased production does not increase utility.
c
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Which of the following items would be least prudent to purchase on credit
What will be an ideal response?
Consumption:
A. is negatively related to the national price level. B. is a major component of aggregate demand. C. measures people's expenditures on real goods and services. D. All of these are true.
Consider a situation with well-behaved international lending between two countries: Atlantica and Pacifica. Assume that Pacifica is wealthier than Atlantica. Illustrate this situation using a graph that relies upon the marginal-product-of-capital curves to show the possible investments in each country according to the returns the investments produce. Use the graph to explain the gains to each country from international lending.
What will be an ideal response?
________ dictates the lowest wage that firms may pay for labor
A) A maximum wage requirement B) A minimum wage law C) The black-market wage D) A price-ceiling wage