The figure above shows the production possibilities frontiers for four nations that have identical production possibilities frontiers in the present. The one that will grow most rapidly in the future is most likely to be producing at point
A) A.
B) B.
C) C.
D) D.
C
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Airlines that charge higher prices for customers who purchase their tickets at the last minute are:
A. not price discriminating because the cost of the ticket is not the same. B. lowering total economic surplus. C. perfect price discriminators. D. price discriminating by identifying passengers with higher reservation prices.
Which category of consumption spending tends to be the most stable over the business cycle? a. Nondurable consumer goods
b. Durable consumer goods. c. Services. d. all of these categories of consumer spending are highly unstable over the business cycle.
A corrective tax is intended to: a. cover the costs of negative externalities
b. increase the private benefits of consumption. c. increase the deadweight loss caused by negative externalities. d. increase the deadweight loss caused by positive externalities.
Which of the following illustrates how the investment accelerator works?
a. An increase in government expenditures increases aggregate spending so that SnoozeBargain Co. decides to modernize its motels. b. An increase in government expenditures increases the interest rate so that SnoozeBargain Co. decides to modernize its motels. c. An increase in government expenditures increases the interest rate so that the demand for stocks and bonds issued by SnoozeBargain Co. rises. d. An increase in government expenditures decreases the interest rate so that SnoozeBargain Co. decides to modernize its motels.