A production possibilities curve is plotted for a nation producing chairs and tables. Which of the following will cause a parallel shift in the production possibilities curve?
A) An intensive training program that increases the productivity of employees engaged in the production of tables
B) An intensive training program that increases the productivity of employees engaged in the production of chairs
C) An increase in the price of both chairs and tables
D) An increase in the availability of raw materials required for the production of both chairs and tables
D
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Government imposed quantitative limits on the amount of pollution firms are allowed to produce is an example of
A) the Pigovian method of pollution control. B) a tradable emission allowance system of pollution control. C) a Coasian solution to pollution reduction. D) a command-and-control approach to pollution reduction.
If the exchange rate for Micromania's micros to United States's dollars is 50 micros = $1, then micros have appreciated when the exchange rate becomes
a. 100 micros = $2 b. 100 micros = $1 c. 25 micros = $0.50 d. 25 micros = $0.25 e. 25 micros = $0.75
The supply function
A. does not include technology. B. shows the relationship between the quantity supplied of X and variables other than its price. C. recognizes that the quantity of a good produced depends on its price and supply shifters. D. describes how much of good X will be produced at an alternative price of good X, given all the other variables being constant.
Which of the following is false?
A. Keynes believed that the economy was basically unstable. B. The classical economists believed that full employment was a "rare occurrence". C. Keynes argued that the expected rate of profit was the most important factor in determining the level of investment demand in an economy. D. The classical economists used the laws of supply and demand to prove the validity of Say's Law.