which shows the production possibilities frontier for Good A and Good B. When moving from point g to point f, the production of _____
a. Good B increases without a change in the production of Good A.
b. Good A increases without a change in the production of Good B.
c. both Good A and Good B increases.
d. Good B decreases but Good A does not increase as much as if resources were used more efficiently. e. Good B increases and the production of Good A decreases.
d. Good B decreases but Good A does not increase as much as if resources were used more efficiently.
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If you anticipate that the inflation rate is going to rise from three percent to 10 percent next year, you should
A) save your funds at a fixed rate of interest. B) borrow funds at a fixed rate of interest. C) keep your funds in your sock drawer. D) wait to buy a house until next year.
What kind of costs remain the same regardless of the level of production?
A. Total B. Fixed C. Marginal D. Variable
An attempt by one oligopolist to increase its market share by cutting prices will leave competitors unaffected.
Answer the following statement true (T) or false (F)
During normal times
A. fiscal policy is not effective because of the recognition time lag. B. fiscal policy is very effective because it the effects of fiscal policy will swamp automatic stabilizers and time lags can be. C. fiscal policy can immediately correct problems in the economy. D. automatic stabizers is not effective in affecting real GDP.