It is not uncommon for people to say something like, "If we can put someone on the moon we should be able to . . . ," followed by the person's favorite project. What response can an economist make to this person?
What will be an ideal response?
Society must make choices, and when it chooses one thing, it must give up something else. Resources were used to get people to the moon, and these resources are not available to do other useful things. The fact that we put someone on the moon means that there are some other things we cannot do.
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Part of the story of the interest rate effect is that a lower price level causes __________ in the demand for credit, which then causes the interest rate to __________
A) a decrease; fall B) a decrease; rise C) an increase; fall D) an increase; rise
The relationship between the quantity of inputs and the quantity of outputs is called:
A. a resource function. B. a production function. C. a cost function. D. an input-output function.