Refer to the diagram for athletic shoes. If the current output of shoes is Q 3 , then:
A. society should produce fewer shoes to achieve the optimal allocation of resources.
B. society should produce more shoes to achieve the optimal allocation of resources.
C. resources are being allocated efficiently to the production of shoes.
D. shoes are more valuable to society than alternative products
A. society should produce fewer shoes to achieve the optimal allocation of resources.
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Which of the following changes shifts the AD curve down and to the left?
A) A temporary increase in government purchases B) A rise in the nominal money supply C) A decrease in corporate taxes D) A decrease in consumer confidence
The marginal rate of technical substitution is equal to:
A) the absolute value of the slope of an isoquant. B) the ratio of the marginal products of the inputs. C) the ratio of the prices of the inputs. D) all of the above E) A and B only
If James is willing to sell an extra concert ticket for $40 and actually sells it for $100, his consumer surplus is $60
a. True b. False Indicate whether the statement is true or false
Assume that consumption in the United States is $9,000 billion in 2009. If the MPC is 0.8 and disposable income increases by $1,000 billion in 2010, then the level of consumption in 2010 will be
A. $10,000 billion. B. $9,800 billion. C. $9,000 billion. D. $7,200 billion.