An increase in available resources, or a technological advancement that enhances the productivity of one or more types of resources, can shift the PPF outward and lead to economic growth
Indicate whether the statement is true or false
true
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The first banking crisis of the 1930s was probably caused by
a. low farm prices. b. the stock market crash. c. antagonism between Wall Street banks and Main Street banks. d. Bank of England attempts to preserve the gold standard by raising interest rates.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
________ is calculated by summing the squared market share percentages of all firms in an industry.
A. The Herfindahl-Hirschman Index B. The Cellar-Kefauver Index C. The antitrust prohibition ratio D. The concentration ratio
Hector has $1,000 a month to spend on clothing and food. The price of clothing is $50 and the price of food is $20. What is the equation for Hector's budget constraint?
A. ($50 × Clothing) / ($20 × Food) = $1,000 B. Clothing + Food < $1,000 C. $50 × Clothing + $20 × Food ? $1,000 D. $50 × Clothing + $20 × Food = $1,000