When constructing a production possibility curve for an economy, which of the following is assumed to be constant?
a. The quantity of resources
b. The government budget
c. The quantity of goods produced
d. The price level
e. The money supply
a
You might also like to view...
Refer to Table 2-9. If the two countries specialize and trade, who should export rice?
A) They should both be exporting rice. B) There is no basis for trade between the two countries. C) Thailand D) Japan
Which of the following disinflationary monetary policies would classical economists prefer?
A) A cold turkey approach that is announced and credible. B) A cold turkey approach that is announced, but not credible. C) A gradual approach that is announced and credible. D) A gradual approach that is unannounced.
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and GDP Price Index rises. b. The quantity of real loanable funds per time period falls, and GDP Price Index falls. c. The quantity of real loanable funds per time period rises, and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which item would probably have inelastic demand for a student?
(A) Sneakers (B) Ball point pen (C) School bus pass (D) Mouse pad