What does a point inside the curve of a PPC indicate?
a. all resources are fully employed
b. not all resources are fully employed
c. employees are stealing
d. workers have sabotaged machinery
Ans: b. not all resources are fully employed
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The figure below shows an IS-LM-FE model for an economy with fixed exchange rates. Initially the economy was at Point A, a triple intersection. Here, the FE curve is flatter than the LM curve.
If monetary authority is unable to sterilize, the interest rate will end up
A. at i0. B. at i1. C. between i1 and i0. D. above i1.
If the price of a 32GB memory card decreases from $25 to $20, the percentage change is:
A. -20 percent. B. -33 percent. C. -50 percent. D. -60 percent.
When the elasticity of substitution in the constant elasticity of substitution utility function lies above 1, an increase in the interest rate will cause a saver to save less.
Answer the following statement true (T) or false (F)
The benefits of social regulation usually are
A) small. B) obvious to people while the costs are hidden. C) less than the costs of social regulation, reducing overall welfare. D) difficult to measure.