Assume the economy moves from a situation with full employment to one in which the unemployment rate is higher. This can be portrayed as:
a. an inward shift of the production possibilities curve
b. an outward shift of the production possibilities curve.
c. a movement from a point inside the production possibilities curve to a point closer to the production possibilities curve.
d. a movement from a point on the production possibilities curve to a point inside the production possibilities curve.
a
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The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. What is the deadweight loss?
A) $10,000 B) $20,000 C) $30,000 D) $40,000
With panel data, the causal effect
A) cannot be estimated since correlation does not imply causation. B) is typically estimated using the probit regression model. C) can be estimated using the "differences-in-differences" estimator. D) can be estimated by looking at the difference between the treatment and the control group after the treatment has taken place.
Which of the following is a bank liability?
a. required reserves b. excess reserves c. actual reserves d. demand deposits e. loans
Interest can be defined as
A) the amount of funds loaned to a creditor. B) the participation of a shareholder in the operations of a firm. C) the return paid to owners of capital. D) the return above opportunity cost paid to owners of a firm.