Why does an economy need a rationing mechanism?
A) because of scarcity
B) because it preserves the power of the wealthy
C) because it eliminates poverty
D) All of the above are correct.
Ques. 2According to the above table, the opportunity cost of each additional computer in terms of televisions
A) remains constant.
B) falls as more computers are produced.
C) increases as more computers are produced.
D) is meaningless because the cost of computers cannot be expressed in terms of televisions.
Ques. 3In the classical model, a rightward shift in the aggregate demand curve will, in the long run,
A) increase real GDP and the price level.
B) increase real GDP and will not change the price level.
C) decrease real GDP and will not change the price level.
D) not change real GDP and will increase the price level.
Ques. 4Which of the following is NOT a characteristic of oligopoly firms?
A) strategic dependence
B) product differentiation
C) non-price competition, such as advertising and promotions
D) perfectly elastic demand curves
Ques. 5The definition of economic growth is the annual percentage
A) increase in the per capita real GDP.
B) increase in the per capita nominal GDP.
C) increase in the total nominal GDP.
D) increase in total exports.
Ques. 6What is an effluent fee? Graphically, show how an effluent fee can correct an externality.
What will be an ideal response?
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