Suppose the country of Starland can produce one pair of shoes using 5 machine hours and 1 labor hour, and it can produce one computer using 3 machine hours and 2 labor hours. Home has a total of 4000 machine hours and 2000 labor hours available for production. a. Given this information, write down the resources constraints for Starland. b. Draw the production possibilities frontier for Starland, with computers on the y-axis and shoes on the x-axis. c. What is the opportunity cost of shoes when Starland is producing mostly computers

The former chairman of the federal reserve, alan greenspan, used the term "irrational exuberance" in 1996 to describe the high levels of optimism among stock market investors at the time. stock market indexes such as the s& p composite price index were at an all-time high. some commentators believed that the fed should intervene to slow the expansion of the economy. why would central banks want to clamp down when the economy is growing? a. to block the formation of unsustainable speculative asset bubbles. b. to curtail excessive profits in the banking system. c. to prevent inflationary forces from gathering momentum. d. all of the above. e. a and c only.