Which of the following is NOT an assumption used in deriving a production possibilities curve?
A. The quantity of resources is constant.
B. Resources are fully employed.
C. The labor force is growing at a constant rate.
D. Technology is constant.
Answer: C
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If a number greater than the mean (average) of a series of observations is added to the series, the new mean is:
A) greater than the original mean. B) smaller than the original mean. C) same as the original mean. D) either greater or smaller than the original mean depending on the number of observations in the series.
Suppose the demand for widgets is given by QD = 100 - 5p - pd + 2Y, where Y is average consumer income, p is the price of lemons, and pd is the price of doodads. According to this equation, widgets are an inferior good
Indicate whether the statement is true or false
The lemons problem is associated with ________ and results in a market for items with only ________ characteristics.
A) adverse selection; desirable B) moral hazard; undesirable C) adverse selection; undesirable D) moral hazard; desirable
How much savings when disposable income is $25 billion?
