Refer to Figure 3-2. An increase in the expected future price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
D
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Suppose that residents of France have seen their real wage rate increase over time. This means that
A) French workers' inflation rate has increased over time. B) French workers have increased their average hours of labor over time. C) French workers have received increases in their nominal wage rate over time. D) French workers have increased buying power. E) the CPI must have decreased over time.
Household production is more likely to occur when
a. it requires many specialized resources b. technology makes it easier than market production c. tax avoidance is undesirable d. less control over the final product is desirable e. the opportunity cost of household production is high
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After comparing each country's production possibilities curve, it is clear that:
A. Country B will lose by trading with Country A. B. Country A should specialize in trucks and Country B should specialize in cars, and both will benefit from trade. C. Country A should specialize in cars and Country B should specialize in trucks, and both could benefit from trade. D. Country A will not benefit from trade.
According to classical economists, in recessions, the government should
A. eliminate barriers to labor market adjustment, such as burdensome regulations on businesses. B. stimulate the economy to increase demand. C. actively use fiscal policy to combat the recession. D. increase the minimum wage so that poor people will be able to afford necessities.