If an economy is represented by a point along its production possibilities curve:
A. it can produce more of one product even if it does not produce less of another product.
B. it can produce more of one product only if it produces less of another product.
C. it cannot produce more of one product unless it stops producing the other product entirely.
D. it cannot possibly produce more of one product, even if it produces less of another product.
Answer: B
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Does fiscal policy affect monetary policy?
A) No, because real output and income can and sometimes do move in the opposite direction from nominal money output and income. B) Yes, because the Fed and the Treasury naturally tend to pursue similar goals. C) Yes, because government deficits or surpluses affect the total demand for credit. D) Yes, because the government usually prints new money to finance deficits and retires that money when it runs a surplus.
If an industry is monopolized by one firm, the four-firm concentration ratio equals
A) 1 percent. B) 25 percent. C) 40 percent. D) 100 percent.
Unemployment due to factors such as weather or fluctuations in demand for certain goods and services during different times of the year is called ________ unemployment
A) frictional B) structural C) cyclical D) seasonal
An appreciation of the dollar makes imported inputs cheaper and shifts the U.S. aggregate supply curve outward, thus pushing American prices down.
Answer the following statement true (T) or false (F)