Refer to Scenario 1 . What is the economic significance of 25 fish captured and 25 crabs captured?
What will be an ideal response?
The economic significance of capturing 25 fish and 50 crabs is that the harvest would be inside the production possibilities frontier, which suggests some resource unemployment. That resource unemployment could be land, labor or capital. It could also be the result of an inefficient use of resources.
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Ceteris paribus, which of the following would cause the aggregate demand curve to shift to the left?
a. lower personal taxes b. a rise in consumer confidence c. greater stock market wealth d. a reduction in transfer payments
Suppose you were the president of the Dayton National Bank, the only bank in Dayton, Ohio. You wanted to borrow money from the Fed. You pick up the phone to ask the Fed what today's _____________ is because that's the rate the Fed charges member banks who borrow from it
a. prime rate b. federal funds rate c. discount rate d. federal reserve rate e. federal bank rate
Suppose households attempt to increase their money holdings. To stabilize output by countering this increase in money demand, the Federal Reserve would
a. increase government spending. b. increase the money supply. c. decrease government spending. d. decrease the money supply.
Which country has the largest percentage of its population covered by some form of private insurance?
a. Japan b. Canada c. France d. United States e. United Kingdom