Referring to a production possibilities curve and the goods being compared, depict the economic event. The economy moves from full employment to a serious recession (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on the curve
B. A movement from a point on the curve to a point inside the curve
C. A shift in the entire curve to the right (outward)
D. A shift in the entire curve to the left (inward)
E. A movement along the curve
B. A movement from a point on the curve to a point inside the curve
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In a foreign exchange market, one country's currency is exchanged for another's
a. True b. False
Which of the following is an example of a third variable causing two other variables?
a. During a theatrical performance, the wind and flying kites both increased. b. During a thunderstorm, felled trees and the sale of oranges both increased. c. During a harsh winter, car accidents and heating bills both increased. d. During an exciting Super Bowl game, heart attacks and snowfall both increased.
Farmers can produce wheat and/or rice. What will happen in the wheat market if there is an increase in the price of rice?
A. Wheat supply will increase. B. Wheat supply will decrease. C. Wheat demand will increase. D. Wheat demand will decrease.
The practice of tying is illegal on the grounds that
a. it allows firms to expand their market power. b. it allows firms to form collusive arrangements. c. it prevents firms from forming collusive agreements. d. the Sherman Act explicitly prohibited such agreements.