Explain what is meant by economic efficiency. Does efficiency imply that the fastest production processes or the most powerful equipment must always be used? Explain
What will be an ideal response?
Efficiency involves a situation in which a given output is produced at lowest cost. Consequently, the fastest-operating or most powerful equipment may not always be efficient.
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A Nash equilibrium occurs
A) when each player acts without considering the actions of the other player. B) when each player takes the best possible action given the action of the other player. C) only when players use the tit-for-tat strategy. D) only when the game is played in Nashville, Tennessee. E) when each player takes the action that makes the combined payoff for all players as large as possible.
What is the role of profits in the neoclassical growth theory versus the new growth theory?
What will be an ideal response?
Credit unions are federally insured through the
A) FDIC. B) FSLIC. C) NCUSIF. D) Comptroller of the Currency.
At the beginning of 1960 the CPI was 29.6. At the beginning of 2000 it was approximately 170.8. Which of the following most closely approximates the forty-year rate of inflation?
A. 141 percent B. 282 percent C. 350 percent D. 477 percent E. 550 percent