The aggregate demand curve is the relationship between the:
a. Price level and the sales of producers
b. Price level and the purchasing of real domestic output
c. Price level and the distribution of real domestic output
d. Real domestic output bought and the real domestic output sold
Ans: b. Price level and the purchasing of real domestic output
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The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy produced 4 million cell phones using the resources efficiently, the PPF would
A) expand farther than shown in the figure. B) expand along the vertical axis and not along the horizontal axis. C) expand, but not as far as shown in the figure. D) expand evenly along both axes. E) not expand.
Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product. This implies all of the following except that
A) one country is more efficient in the production of the good than the other. B) the inputs are not equally productive in the two countries. C) the prices of the inputs are not the same in the countries. D) the two countries use different technologies to produce the product.
Economy with no productivity growth is called the
A) zero-sum society. B) zero-growth society. C) export-led society. D) doomed-to-fail society.
Applying the idea of time inconsistency, we can say that, in general, a person's "future-oriented self":
A. has the same objectives as the person's present-oriented self, but articulates them differently. B. is more rational in decision-making, because its choices are generally healthier or more altruistic. C. tends to choose healthier options, whereas the present-oriented self gives into temptation more easily. D. is less rational in decision-making, because that self rarely matches actual behavior.