Hurricane Katrina destroyed much of New Orleans and other parts of the South. Which of the following statements is true? The hurricane:
A. caused the production possibilities frontier of the United States to shift in.
B. caused the production possibilities to increase, since it created a lot of work to rebuild the city affected areas.
C. caused the production possibilities frontier of the United States to shift.
D. didn’t change the production possibilities frontier, but moved from a point on the frontier to a point inside the frontier.
A. caused the production possibilities frontier of the United States to shift in.
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Refer to Figure 8A.1. Moving from K0 to K1
A) saving becomes negative. B) capital stock continues to increase. C) depreciation starts to decline. D) economic growth stops.
All else the same, when real GDP increases, the
A) supply of money decreases. B) demand for money increases. C) supply of money increases. D) demand for money decreases. E) supply of money does not change, and the demand for money does not change.
Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?
A) Cell phones and wireless Internet access have increased worker flexibility. B) Internet use has increased the efficiency of how firms buy and sell to each other and to consumers. C) Information and communication innovations are increasingly geared toward improving business processes and not consumer products. D) Faster computers have sped up data processing.
If a union is able to successfully lobby Congress to limit imports of rival products, and thus to raise the demand (and thus price) for the goods or services they make, then which of the following best describes the outcome?
A. The supply of labor will increase. B. The demand for labor will increase. C. The supply of labor will decrease. D. The demand for labor will decrease.