Economic growth is represented by an inward shift of the production possibility curve
a. True
b. False
Indicate whether the statement is true or false
False
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A government subsidy
A) is a policy that can be used to help eliminate the deadweight loss from an external cost. B) can help achieve an efficient amount of output when the good has an external benefit. C) increases consumers' marginal benefit from the good. D) Both answers A and C are correct. E) Both answers B and C are correct.
Social Security began as a "pay-as-you-go" system, meaning that payments to current retirees were paid
A) from taxes collected from current workers. B) as the government collected revenues from tariffs and excise taxes in the years Social Security payments were made. C) as long as the government had funds available. D) from taxes collected from retired workers.
If the equilibrium exchange rate between U.S. dollars and Japanese yen is $0.01 = 1 yen, but currently the exchange rate is $0.009 = 1 yen, then with flexible exchange rates the dollar price of a yen will __________ and the yen will __________
A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
LRE. After a decrease in AD, there will immediately be _____
a. inflation and recession b. deflation and recession c. inflation and expansion d. deflation and expansion