Which of the following is held constant when constructing a production possibilities curve?
A) the price level
B) the income level
C) combination of goods produced
D) the amount of total resources used
D
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Banks decide to raise the interest rate they pay on checking accounts from 1% to 2%. This action would
A) increase money demand, shifting the LM curve up and to the left. B) increase money demand, shifting the LM curve down and to the right. C) decrease money demand, shifting the LM curve up and to the left. D) decrease money demand, shifting the LM curve down and to the right.
In a particular country in 1998, the average worker needed to work 40 hours to produce 100 units of output. In that same country in 2008, the average worker needed to work 36 hours to produce 72 units of output. In that country, the productivity of the average worker
a. decreased between 1998 and 2008, so we would expect the standard of living to have decreased accordingly. b. increased between 1998 and 2008, so we would expect the standard of living to have increased accordingly. c. decreased between 1998 and 2008, so we would expect inflation to have decreased accordingly. d. increased between 1998 and 2008, so we would expect inflation to have increased accordingly.
?Kites /hourSnowboards /hourJesse81April123
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is true?
A. Jesse has an absolute advantage in painting kites but not snowboards. B. Jesse has an absolute advantage in painting snowboards but not kites. C. Jesse has an absolute advantage in painting both goods. D. Jesse has an absolute advantage in painting neither good.
A perfectly competitive market results in efficiency because
A. Price rises high enough to equal marginal cost. B. MC < P. C. Price is driven down to minimum ATC. D. Zero economic profit is achieved.