When moving along a production possibilities curve, the opportunity cost to society of getting more of the good on the horizontal axis:
A) is constant.
B) is measured in dollar terms.
C) is measured by the amount of the other good that must be given up.
D) usually decreases.
Ans: C) is measured by the amount of the other good that must be given up.
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Milton Friedman called the response of lower interest rates resulting from an increase in the money supply the ________ effect
A) liquidity B) price level C) expected-inflation D) income
Which of the following gambles should be considered more attractive?
A. If heads, you win $200; if tails, you lose $198. B. If heads, you win $5; if tails, you lose $10. C. If heads, you win $9; if tails, you lose $6. D. If heads, you win $6; if tails, you lose $4.
Suppose that at a bicycle shop, instead of having each worker assemble an entire bicycle themselves, one person welds the frames, another person works on the braking system, another person works on the tires, and another person works on the gears. This best demonstrates the concept of
A. comparative advantage. B. microeconomics. C. division of labor. D. absolute advantage.
A person who is unemployed because of a mismatch between the person's skills and current employment requirements is experiencing
A. cyclical unemployment. B. frictional unemployment. C. seasonal unemployment. D. structural unemployment.