Which economists believe in using government spending and taxes to move the economy from AD1 to AD2 in Figure 18.3?
A. Keynesians.
B. Supply-siders.
C. Classical economists.
D. Monetarists.
Answer: A
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Which of the following industrial changes allowed the smallest start-up manufacturers to compete with great industrial capitalists?
A. A positive trade balance at the turn of the 20th century. B. The completion of the national railroad network. C. The development of the moving assembly line as a division of labor in manufacturing. D. The transition from private electric generators to centralized utility based power production.
The direct exchange of goods and services for other goods and services without the use of money is
A) barter. B) financial intermediaries. C) a store of value. D) a standard of deferred payment.
Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes. The figure above illustrates his production possibilities frontier. What is Gabriel's opportunity cost of raising another 100 cows?
A) 5.0 tons of potatoes B) 3.0 tons of potatoes C) 1.25 tons of potatoes D) 100 cows E) 1.0 ton of potatoes
The slope of the budget constraint:
A) changes as the marginal rate of substitution changes. B) is the ratio of the prices of the two goods. C) is the ratio of the budget to total utility. D) equals one, since the consumer can purchase any combination along the budget constraint.