If an economy that produces capital and consumer goods is operating at a point on its production possibilities curve:
A. the economy is incapable of achieving significant economic growth.
B. it is achieving full employment but not full production.
C. more capital goods can be produced only at the cost of some consumer goods.
D. it is achieving full production but not full employment.
Answer: C
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Refer to the market diagram. Relative to the surplus they would receive in a competitive market, consumers lose how much surplus because there is a monopoly?
The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.
a. Area F + G + H
b. Area C + D + E
c. Area E + H
d. Area A + B
Typically the largest component of the narrowly-defined money stock in the United States, known officially as M1, is
A) commercial bank reserves. B) currency in commercial bank vaults or the hands of the public. C) demand deposits and savings deposits in commercial banks. D) checking account deposits. E) gold, silver, coins, and paper currency.
The three components of personal consumption expenditures are:
a. durable goods, nondurable goods, and services. b. durable goods, food, and housing. c. durable goods, nondurable goods, and housing. d. durable goods, services, and food. e. durable goods, services, and transportation.
For the purpose of analyzing the gains and losses from a tax on a good, we use tax revenue as a direct measure of the
a. government's benefit from the tax. b. government's loss from the tax. c. deadweight loss of the tax. d. overall net gain to society of the tax.