To achieve allocative efficiency, one must compare the
A) marginal cost of a good to its opportunity cost.
B) opportunity cost to the attainable point on the production possibilities frontier.
C) marginal benefit of a good to its marginal cost.
D) marginal cost to the production efficiency cost.
E) point of production efficiency to the point of allocative efficiency.
C
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A one-year bond has an interest rate of 0.2% and is expected to rise to 0.5% next year and 1.1% in two years. The term premium for a two-year bond is 0.1% and for a three-year bond is 0.25%
What are the interest rates on a two-year bond and three-year bond according to the liquidity premium theory?
Which of the following is false about gold as money?
A. It is acceptable to traders. B. It is durable. C. The money supply would be easy to control because of the predictability of new gold discoveries. D. It has value other than money.