The___________states that in the short run, output will change as one input is varied while the others are held constant.
Fill in the blank(s) with the appropriate word(s).
Ans: Law of Variable Proportions
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The table above lists six points on the production possibilities frontier for grain and cars. From this information you can conclude that production is inefficient if this economy produces
A) 6 tons of grain and 18 cars. B) 4 tons of grain and 26 cars. C) 2 tons of grain and 27 cars. D) 8 tons of grain and 10 cars.
If reserves in the banking system increase by $100, then checkable deposits will increase by $2,000 in the simple model of deposit creation when the required reserve ratio is
A) 0.01. B) 0.05. C) 0.10. D) 0.20.
Why was the stock market crash of 1929 a disaster for the economy?
(a) Through the "wealth effect," investors lost paper wealth and consequently reduced their spending on goods and services. This led to cutbacks in production and jobs. (b) Businessmen became pessimistic about the future and reduced spending on plants and equipment, thus causing reduced production and increased layoffs in the capital-goods sector of the economy. (c) The crash revealed a flawed structure of credit and weak system of banks and other financial institutions in the U.S. (d) All of the above are correct
Real GDP is:
A. calculated based on goods and services valued at constant prices. B. calculated based on goods and services valued at current prices (current at the time of production). C. useful in clearly seeing changes in prices over time using GDP. D. the actual GDP that is created in the economy when we consider all items purchased.