When drawing a production possibilities frontier, all of the following are usually assumed except one. Which is the exception?
a. The quantity of resources is rapidly growing.
b. Technology is fixed.
c. Resources can be shifted between production of the two goods.
d. The production possibilities frontier is drawn for a particular time period.
e. Resources are fully and efficiently employed.
A
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The division of labor can benefit society only if
A. a system of exchange exists. B. society uses all of its resources efficiently. C. society has no specialized resources. D. labor resources are not scarce.
In the United States, monopoly regulation began primarily because:
a. there were no natural monopolies in the real world. b. the government wanted to promote other forms of business practices. c. monopolies did not typically follow occupational and safety rules. d. monopolies tended to restrict output and raise prices. e. most economists believed that the majority of industries were following the purely competitive model.
Refer to the above figure. The government has just engaged in expansionary fiscal policy shifting the aggregate demand curve from AD 1 to AD 2 . Interest rates have started to rise. Which of the following statements is true in the short run?
A) Real GDP will be $14 trillion since the effect of government spending is not influenced by interest rates. B) Real GDP will fall back to $11 trillion since the effect that increased government spending has on real GDP is short lived. C) Real GDP will go beyond $14 trillion as businesses and consumers react to the increase in interest rates. D) Real GDP will end up somewhere between $11 and $14 trillion as businesses and consumers reduce their spending in response to the increase in interest rates.
A monopoly is most likely to be temporary if the monopoly power is derived from:
What will be an ideal response?