The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
With the open trade economy, Silvia and Art can consume any combination of beef and computers from the line
A. PY.
B. XYZ.
C. PQ.
D. XY.
Answer: C
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Which statement is false?
A. The 1990s was one of the most prosperous decades in the United States' history. B. The United States' economy reached its tenth year of steady expansion in the spring of 2001. C. Compared to other decades, the 1990s was a decade was unique in that it had strong economic growth with no recessions. D. At the end of the 1990s, the government was running budget surpluses.
Refer to Figure 9-1. Based on the graph of the labor market above, if a minimum wage of $8 per hour is imposed, which of the following will result?
A) The quantity of labor demanded by firms will rise. B) The quantity of labor demanded by firms will fall. C) The unemployment rate will fall. D) Both A and C will occur.
A rightward shift in aggregate demand will cause an increase in output and price level if aggregate supply is
A. Downward-sloping to the right. B. Upward-sloping to the right. C. Horizontal. D. Vertical.
A “near money” is an asset that can be
A. indistinguishable from commodity money. B. spent easily. C. a close substitute for money. D. only issued by a bank.