As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
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Which of the following is not a potential problem associated with government debt?
a. redistribution of income b. promotes underconsumption c. creates inflation d. promotes undersaving e. leads to less private investment
The original (1958 ) Phillips curve
A) showed that stagflation is inevitable. B) showed the tradeoff between the use of monetary and fiscal policy. C) has never been used as an important economic policy tool. D) suggested a tradeoff between wage inflation and the unemployment rate. E) none of the above
What is the term used to describe total revenues minus total explicit costs?
a. marginal benefits b. economic profits c. accounting profits d. marginal costs
Which of the following is not considered part of M2?
A. small time deposits of less than $100,000 B. money market mutual fund shares C. savings deposits D. large time deposits of more than $100,000