When making a choice to do more of one activity, the highest-valued other choice society does not make is called _______ , and it is measured _______ .
A) opportunity cost; in terms of the money it costs
B) increasing cost; in terms of the amount of money spent doing so
C) constant cost; by the slope of the production possibilities curve at that level
D) opportunity cost; by the slope of the production possibilities curve at that level
Ans: D) opportunity cost; by the slope of the production possibilities curve at that level
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
In California, proposition 209 eliminated racial preferences in college admissions
Indicate whether the statement is true or false
Under flexible exchange rates, the exchange rate is set by
A) the International Monetary Fund. B) the U.S. Federal Reserve's Board of Governors. C) the intersection of demand and supply curves in the currency markets. D) negotiations among central banks of the major industrial powers.
Suppose that Big-Cat and Fat-Cat are rival cat food brands, and the price of Fat-Cat is reduced. Following this price drop, is there a shortage or a surplus of Big-Cat at the old price of Big-Cat?
a. Surplus. b. Neither, a price drop can not cause a shortage or surplus. c. Neither, equilibrium exists. d. Shortage.