If an economy keeps increasing its capital stock, then over time its production possibilities curve will:
A. not move.
B. shift to the left.
C. shift to the right.
D. disappear because scarcity ceases to exist.
Answer: C
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Economists use different definitions of money because
A) deposits can be domestic or international. B) deposits may be held at banks or savings and loans. C) it is not always clear which assets are used primarily as money. D) there are differences in the frequency with which depositors use their accounts.
As more of a good is consumed, marginal benefit ________ and as more of a good is produced, marginal cost ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; does not change
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
A tax on U.S. imports of Chinese-made tires is likely to:
a. reduce the price of tires for the domestic buyers for tires in the U.S. b. reduce the volume of imports c. increase the volume of imports d. have no effect on the volume of imports