The production possibilities curve represents the set of all
A) nonlinear forms of production in the economy.
B) combinations of goods and services that can be used in the production of other goods and services.
C) factors of production that can be used to manufacture goods and services.
D) feasible combinations of goods that the economy can produce given that a nation's resources are fully employed.
D
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If a country has a fixed exchange rate
A) central banks must buy and sell their holdings of currencies to maintain a given exchange rate. B) central banks have more control over real GDP in the economy. C) the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency. D) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency.
A graph of total profits is always likely to be positively sloped throughout its length.
Answer the following statement true (T) or false (F)
If ten years ago the price of a movie ticket was $5 and the average hourly wage was $10, and today the price of a movie ticket is $8 and the average hourly wage is $20, then
a. movies are now relatively cheaper in terms of work hours. b. movies are now relatively more expensive in terms of work hours. c. the relative price of movies has remained constant. d. workers now need to work longer hours to earn one movie ticket.
Those who are interested in assessing the relative standard of living of different countries over a given time period are most likely to look at
A. Percentage change in GDP. B. GDP. C. Population. D. Per capita GDP.