An efficient allocation of resources is demonstrated by a point
a. above the production possibilities frontier.
b. below the production possibilities frontier.
c. on the production possibilities frontier.
d. near the middle of the production possibilities frontier.
c
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Which of the following will increase the money supply?
A) an increase in the discount rate (relative to the federal funds rate) B) a decrease in the required reserve ratio C) an open market sale by the Fed D) a and c E) b and c
Answer the following statement(s) true (T) or false (F)
1. Falling real GDP per capita can bring on unemployment, bankruptcies, and many other human hardships. 2. With nonmarket transactions, no money is exchanged. 3. The underground economy is excluded from the GDP because it goes unreported to the government. 4. If people start taking more three-day weekends, GDP and people’ s economic well- being will necessarily drop. 5. The GDP often reflects important changes in the improvements in the quality of goods.
Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 9 percent, and the current profits of the firm are $60 million. What is the value of the firm?
A. $4,480.6 million B. $289.4 million C. $3,270 million D. None of the statements associated with this question are correct.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.