Which of the following would not shift the production possibilities frontier?
a. an increase in worker training
b. a war that destroyed many buildings
c. a technological improvement that improved fuel efficiency in cars
d. a decrease in the size of the labor force
e. a change to a more inefficient production process
E
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If a farmer’s opportunity cost of producing 10,000 bushels of wheat is 5,000 fewer bushels of soybeans, then his or her opportunity cost of producing 5,000 bushels of soybeans must be 10,000 fewer bushels of wheat.
Answer the following statement true (T) or false (F)
If the MPC is 0.8, what change in investment spending is required to effect a total change in income by $60 billion?
A. $25 billion B. $15 billion C. $20 billion D. $12 billion
The income effect of a wage increase is expected to increase
a. supply of labor. b. supply of goods and services. c. demand for leisure. d. demand for labor.
At some point during the financial crisis of 2008–2009, people with uninsured deposits at financial institutions withdrew money from their accounts at those institutions. This phenomenon characterized which element of the financial crisis?
a. the decline in confidence in financial institutions b. the credit crunch c. the economic downturn d. the decline in asset prices