A circular-flow model and production possibilities frontier are similar in that
a. neither allows economic analysis to occur.
b. neither can be represented visually on a graph.
c. both make use of assumptions.
d. both make use of complex equations to arrive at solutions.
c
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In the United States, the labor-force participation rate since 1960 has been
A) increasing for females. B) unchanged for both males and females. C) declining for females. D) declining for both males and females.
How does an increase in government spending affect the aggregate expenditure line?
A) It shifts the aggregate expenditure line upward. B) It increases the slope of the aggregate expenditure line. C) It shifts the aggregate expenditure line downward. D) It decreases the slope of the aggregate expenditure line.
When a government program is justified not on its merits but on the number of jobs it will create,
a. the program is an efficient use of taxpayer dollars. b. it should be approved only if the unemployment rate is low. c. taxes should be raised to fund the program. d. it is known as the "broken window fallacy.".
A system in which the factors of production are owned by private citizens
a. command economy b. traditional economy c. capitalism d. free enterprise economy