An economy can produce the following combinations of goods: 50X and 0Y, 40X and 10Y, 30X and 20Y, 20X and 30Y, 10X and 40Y, and 0X and 50Y. The production possibilities frontier (PPF) for the economy is
What will be an ideal response?
a straight (downward-sloping) line because the opportunity cost of producing the two goods is constant.
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Use the following information to answer the next question.The following items describe the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment.Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month but still has not gotten a job offer.George used to work in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in a few months when national economic conditions improve.Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in
her aircraft design skills.Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year but was unsuccessful and quit looking for work.Which individual is cyclically unemployed? A. Jeanette B. Mollie C. Ricardo D. George
Inflation imposes a cost on society by directly decreasing average real income in the economy
a. True b. False
Kim's demand curve for sodas:
A. assumes that the only variables that change are the price of sodas and the quantity of sodas demanded by Kim. B. shows the quantity of sodas Kim consumes as her preference for sodas change. C. makes no assumptions about Kim's preference for sodas. D. assumes that the only variable that changes is Kim's income.
Explain why a demand curve slopes downward.
What will be an ideal response?