An outward shift of the production possibilities curve demonstrates
A) economic growth. B) an increased rate of inflation.
C) a cyclical shock. D) a recession.
A
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The extra benefit resulting from a small increase in an activity is called the
A) opportunity cost. B) marginal benefit. C) diminishing returns of the activity. D) marginal cost.
Marginal cost is the
a. change in total cost resulting from producing one more unit of output. b. change in total fixed cost resulting from producing one more unit of output. c. total cost when one more unit of output is produced. d. total fixed cost when one more unit of output is produced.
Suppose in London £/$ = 0.5 while in New York £/SF = 0.2. The corresponding cross rate (SF/$) is
A) 2.5. B) 0.1. C) 0.4. D) 0.3.
If business fluctuations are from demand-side forces,
a. monetary and fiscal policy will move inversely. b. interest rates and budget deficits will move inversely. c. unemployment and inflation will move inversely. d. unemployment and budget deficits will move inversely.