If you move from a point inside the production possibility curve to a point on the production possibility curve, it follows that efficiency is:
A. increased because the economy is now on the production possibility curve.
B. increased only if production of both goods increases.
C. reduced if less of one good is produced.
D. increased as long as the combined output of both goods increases.
Answer: A
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A market characterized by asymmetric information will have an equilibrium price if at that price
a. quantity demanded equals quantity supplied when all participants have the same information. b. quantity demanded equals quantity supplied given prevailing information levels. c. quantity demanded equals quantity supplied under perfect information. d. quantity demanded exceeds quantity supplied if suppliers are better informed (and vice versa).
To some economists, the "Great moderation" means:
a. a small change in real wages. b. a low inflation rate. c. a low unemployment rate. d. low output growth variability. e. low money supply growth.