If an economy is operating at a point inside the production possibilities curve, then
A) society's resources are being inefficiently utilized.
B) the curve will move to the left.
C) society's resources are being used to produce too many consumer goods.
D) economic policy must implemented to slow growth of the economy further.
Answer: A
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What happens to real money demand (rise, fall, no change) due to a change in each of the following factors?
(a) A tax on stock market transactions is introduced. (b) Computerized bond trading reduces transactions costs. (c) People's average level of wealth rises. (d) The threat of a recession increases the riskiness of stocks and bonds. (e) The interest rate paid on checking account balances declines. (f) The price level falls in a one-time jump.
What type of good is clean air?
A) Rival and exclusive B) Nonrival and exclusive C) Rival and nonexclusive D) Nonrival and nonexclusive