All of the following would cause the production possibilities curve to shift outward EXCEPT
A) an improvement in technology.
B) an increase in the amount of labor available.
C) a decline in the unemployment rate.
D) an increase in the level of capital stock.
Answer: C
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Which of the following is (are) price discrimination?
i. charging different prices based on differences in production cost ii. charging business flyers a higher airfare than tourists iii. charging more for the first pizza than the second A) i only B) ii only C) ii and iii D) i and iii E) i, ii, and iii
Figure 11-1
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In Figure 11-1, what can be concluded about the economy if production moves from Point D to Point A?
A. An improvement of calculator technology B. An increase in resources for producing other goods C. A reduction in the need for calculators in the economy D. A more equal distribution of resources in the economy
If people start to use cash because of an increase in credit card fraud, which of the following would we expect to happen under a neutralization policy?
a. The money supply would decrease, real GDP would not change, and the interest rate would not change. b. The money supply would increase, real GDP would not change, and the interest rate would not change. c. The money supply would decrease, real GDP would increase, and the interest rate would decrease. d. The money supply would increase, real GDP would not change, and the interest rate would decrease. e. The money supply would decrease, real GDP would decrease, and the interest rate would not change.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The GDP Price Index falls, and reserve-related (central bank) transactions remain the same. c. The GDP Price Index and reserve-related (central bank) transactions remain the same. d. The GDP Price Index rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.