Other things equal, a decrease in the Z factors shifts
A. the AD curve to the left.
B. the AD curve to the right.
C. the AS curve to the right.
D. the AS curve to the left.
Answer: B
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In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is inefficient?
A) 4 million pounds of bananas and 4 million hats B) 2 million pounds of bananas and 5 million hats C) 0 pounds of bananas and 6 million hats D) 1 million pounds of bananas and 3 million hats
Which of the following is a government sponsored enterprise that funds or guarantees a substantial number of mortgage loans in the U.S.?
a. Fannie Mae b. Freddy Mac c. both A and B above d. neither A nor B above
In contrast to the law of supply, sometimes ______ can reduce the quantity supplied.
A. price negotiations B. an increased price C. a market supply curve D. a market demand curve
Consider a world of two countries producing only wheat and cloth. In one hour, residents of Country A can produce 1 unit of wheat and 0.5 unit of cloth, whereas residents of Country B can produce 0.3 unit of wheat and 0.4 unit of cloth. Country A should
export A) wheat and cloth; country B should not export anything. B) wheat and country B should export cloth. C) nothing and country B should export both wheat and cloth. D) cloth and country B should export wheat.