How much money to hold is an application of the:
A. cost-benefit principle.
B. scarcity principle.
C. principle of increasing opportunity cost.
D. principle of comparative advantage.
Answer: A
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The slope of a typical isoquant is negative because to produce a given output, a producer
A) can use less of one input only if the productivity of that input increases B) will use more of one input only if the price of that input falls. C) will use more of one input only if it uses more of another. D) can use less of one input only if it uses more of another.
Most economists believe that
a. speculation on financial markets reduces their efficiency and should either be abolished or heavily regulated. b. speculation on financial markets does not need to be regulated because it has been largely eliminated by regulations on program trading. c. speculation socially benefits financial markets but harms nonfinancial markets. d. speculation helps both financial and nonfinancial markets function more efficiently.