When economists use the term "big tradeoff" when discussing efficiency they are referring to the tradeoff between
A) external costs and external benefits.
B) marginal cost and marginal benefits.
C) producer surplus and consumer surplus.
D) efficiency and fairness.
E) deadweight loss and producer/consumer surplus.
D
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When you buy a corporate bond, you are
A) borrowing funds from the corporation. B) lending funds to the corporation. C) selling an ownership right in the corporation. D) acquiring an ownership right in the corporation. E) b and d
From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next year aggregate demand would grow significantly faster than long-run aggregate supply, then the Federal Reserve would most likely
A) increase income tax rates. B) decrease income tax rates. C) increase interest rates. D) decrease interest rates.