The law of increasing opportunity costs causes the production possibilities curve to:
A. be a straight line.
B. slope upwards.
C. have a bowed-out shape.
D. shift inward.
Answer: C
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A deadweight loss occurs whenever
A) the total benefit of a good does not equal its total cost. B) the marginal social benefit of a good does not equal its marginal social cost. C) there is perfect price discrimination. D) there is no consumer surplus.
Those that believe that the recent period of slow growth is the new normal that we need to get used to
A. believe we have to hope for the best. B. believe we are on the cusp of a period of new (artificial intelligence-based) innovations. C. believe that the causes of older growth (increases in the labor force participation rate and the use of energy to replace people power) are still available. D. believe that the period of robust growth was actually just a historic anomaly.
The graphs below show an economy of two people with identical incomes in two years. They have different preference patterns as shown. 
Why is the market for loanable funds not in equilibrium?
What will be an ideal response?
Which of the following examples would most likely be involved in an investment?
a. hammers b. apples c. chewing gum d. tea cups