The production possibilities curve illustrates the basic principle that
A. an economy's capacity to produce increases in proportion to its population size.
B. if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
C. an economy will automatically seek that level of output at which all of its resources are employed.
D. the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
B. if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
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To evaluate the size of the federal budget deficit or surplus over time, it would be best to look at the
A) budget deficit or surplus as a percentage of tax revenues. B) budget deficit or surplus as a percentage of government spending. C) absolute size of the budget deficit or surplus. D) budget deficit or surplus as a percentage of GDP.
Managers of profit centers usually have
a. A lot of discretion over decisions b. Most of their decisions overseen by corporate executives c. No discretion over decisions d. Given excessively high bonuses
Credit cards should be included in M1 because they are just like checks
a. True b. False Indicate whether the statement is true or false
The towns of Jekyll and Hyde each have a labor force of 2,000 people. In Jekyll, 500 people were unemployed for the entire year, while the rest of the labor force was employed continuously. In Hyde, every member of the labor force was unemployed for three months and was employed for nine months. The average duration of unemployment spells over the year was ________ months in Jekyll and ________ months in Hyde.
A. 3; 9 B. 12; 3 C. 3; 3 D. 12; 9