The bowed shape of the traditional production possibilities curve reflects the
A) negative side effects of economic growth.
B) fact that not all resources are equally well-suited to producing all goods.
C) costs of unemployment.
D) problems of inequality.
B
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In the above figure, the equilibrium interest rate is ________ and the equilibrium quantity of money is ________ trillion
A) 4 percent; $1.2 B) 8 percent; $1.2 C) 4 percent; $0.6 D) 8 percent; $0.6 E) 0 percent; $1.2
The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops
A) 300,000 B) 500,000 C) 700,000 D) 0 flip-flops because the United States exports E) 400,000
Which of the following statements is false?
A) Keynes believed that the level of investment depends on more than just the interest rate. B) Saving is the difference between disposable income and consumption. C) Keynes believed that saving is more responsive to changes in income than to changes in the interest rate. D) According to Keynes, wage rates may fall too quickly when the economy is in a recessionary gap.
Quick conclusions about real per student spending should be made with care because
A. more money is devoted education generally, but an increasing share is spent on special education. B. less money is spent on special education and less is also spent on everything else. C. more money is spent on non-instructional spending and less is spent on instructional spending. D. more money is spent on special education and less is spent on everything else.