A bowed Production Possibilities Curve (PPC) indicates
A) inefficient production.
B) that the trade-off between the 2 goods is not constant.
C) changing technology.
D) only 1 good is always being produced.
Answer: B
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Which of the following would not shift the aggregate demand curve?
A. Income tax rates B. Real interest rates C. Productivity rates D. Foreign-exchange rates
Refer to Figure 14.1. Other things equal, a decrease in taxes is best represented as a movement from
A) point Y to point Z. B) point Z to point X. C) point Z to point Y. D) point Y to point X.
The corporation income tax causes
A. capital to flow from the corporate sector to the noncorporate sector. B. capital to flow into the corporate sector from the noncorporate sector. C. less capital to be used in both the corporate sector and the noncorporate sectors. D. more capital to be used in both the corporate sector and the noncorporate sectors.
Monetarists argue that the relationship between:
A. The quantity of money the public wants to hold and the level of GDP is not stable B. The quantity of money the public wants to hold and the level of GDP is stable C. The quantity of money the public wants to hold and the level of saving is stable D. Velocity and the interest rate varies directly