The production possibilities frontier of an economy is based on the assumption that the:
a. amount of consumer goods produced in the economy is constant during a given year.
b. quality of labor available in the economy is variable during a given year
c. patent laws applicable in the economy are constant during a given year.
d. level of technology available in the economy is variable during a given year.
e. economy can either produce capital goods or consumer goods during a given year.
c
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Compared to perfect competition, monopoly in the long run
A. restricts output. B. charges a higher price. C. produces at less than minimum average cost. D. All of these responses are correct.
Members of the Federal Reserve Board of Governors are appointed for one fourteen-year term so that they:
A. Have time to learn how the Fed operates. B. Are more likely to make politically acceptable decisions. C. Make their decisions based on economic, rather than political, considerations. D. Have enough time to travel to all 12 regional banks.
Working as an elevator operator used to be a common job in the workforce decades ago, but today few jobs remain. The unemployment created by the introduction of automatic elevators would be considered:
A. cyclical. B. structural. C. frictional. D. wait.
You own a condominium in Orlando, Florida. During the recent downturn in housing values in the area your condo's value declined by $75,000. Your economic income ________ and your taxable income ________.
A. fell; fell B. fell; was unchanged C. was unchanged; was unchanged D. was unchanged; fell