The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy produced 4 million cell phones using the resources efficiently, the PPF would
A) expand farther than shown in the figure.
B) expand along the vertical axis and not along the horizontal axis.
C) expand, but not as far as shown in the figure.
D) expand evenly along both axes.
E) not expand.
C
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The relative quickness with which the Open Market Committee can respond to changes in economic indicators leads the Fed to
A) control precisely the growth rate of the money stock. B) control precisely the growth rate of total spending. C) make more frequent mistakes in monetary policy than Congress makes in executing fiscal policy. D) use the discount rate to control bank lending and hence aggregate demand.
In the United States over the past fifty years, the fraction of GNP devoted to consumption has fluctuated in a range of about
A) 42 to 49 percent. B) 32 to 39 percent. C) 22 to 29 percent. D) 82 to 89 percent. E) 62 to 70 percent.
If inflation in country A exceeds inflation in country B, we can express the percentage change in the units of currency of country A per unit of currency of country B as:
A. the inflation rate in country A - the inflation rate in country B. B. the inflation rate in country A divided by the inflation rate in country B. C. the inflation rate in country A times the inflation rate in country B. D. the inflation rate in country B - the inflation rate in country A.
Economic resources are also called:
A. free gifts of nature. B. consumption goods. C. units of money capital. D. factors of production.