The consumption possibilities curve shows the combinations of goods that can be:
A. consumed by a nation before trade begins.
B. consumed by a nation after trading begins.
C. produced by a nation before trading begins.
D. produced by a nation after trade begins.
Answer: B
You might also like to view...
A consumer's demand for a product decreases because other consumers own it. This would reflect: a. A bandwagon effect
b. a positive network externality. c. A snob effect. d. none of the above
If an excise tax is imposed on a good or service,
a. the supply curve shifts upward b. the supply curve shifts downward c. the price paid by consumers decreases d. the net price received by sellers increases e. the quantity produced and sold increases
The market mechanism:
A.) Works through central planning by the government. B.) Eliminates market failures created by the government. C.) Uses prices as a means of communication between consumers and producers. D.) Is very inefficient since consumers cannot communicate directly with producers.
Multiplier effect is the additional shifts in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending.
Answer the following statement true (T) or false (F)