Answer the following questions true (T) or false (F)
1. To increase gas mileage, automobile manufacturers make cars small and light. Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage. These facts suggest that a positive relationship exists between safety and gas mileage.
2. A decrease in the unemployment rate may be represented as a movement from a point inside the production possibilities frontier to a point on the frontier.
3. If a country is producing efficiently and is on the production possibilities frontier, producing more of one good would result in a movement along the frontier.
1. FALSE
2. TRUE
3. TRUE
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What has been the reaction of many governments to the failure of central planning?
What will be an ideal response?
One of the series included among the lagging indicators is
A) the change in sensitive material prices. B) the index of industrial production. C) employees on non-agricultural payrolls. D) average duration of unemployment.
An example of an automatic stabilizer is
A) personal income taxes. B) inheritance taxes. C) veterans' benefits. D) corporate dividends.
Which question is an illustration of a microeconomic question?
a. Is the quantity of wine purchased in one year dependent upon the price of wine? b. Is the purchasing power of the dollar higher or lower today than it was in 2000? c. Does government spending influence the total level of employment in the economy? d. Is capitalism superior to socialism?