An improvement in technology will cause the
A. economy to move closer to its production possibility frontier.
B. economy to move down the production possibility frontier.
C. production possibility frontier to shift inward.
D. production possibility frontier to shift outward.
Answer: D
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The United States represents a pure command system, with government directly accounting for a little more than one-half of all economic activity
Indicate whether the statement is true or false
In order for consumers to make cost-conscious decisions, all of the following conditions are essential. Which one is not?
a. They must have knowledge of the product they are considering—its quality and price. b. They must have money to spend. c. They must be able to eliminate the uncertainty of their decision and choose the best outcome. d. They must be able to capture the benefit of making a cost-conscious decision. e. They must have the ability to measure and compare the relative value of their options.
Long-run increases in living standards, as measured by real GDP per person, are primarily the result of increases in:
A. government budget surpluses. B. the money supply. C. population. D. average labor productivity.
A proportional tax is one that
A. Collects the same rate on every dollar of income. B. Falls as income rises. C. Is collected voluntarily for specific expenditure purposes. D. Rises as income rises.