The slope of the IS curve is ________ and the slope of the Fed rule is ________.
A. positive; negative
B. positive; positive
C. negative; negative
D. negative; positive
Answer: D
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A production possibilities frontier is a line or curve that:
A. shows all the possible combinations of outputs that can be produced using all available resources. B. shows what can be produced when all available resources are efficiently used. C. shows the best combinations of outputs that can be produced using all available resources. D. explains why societies make the choices they do.
According to the rule of rational choice, an individual will undertake an activity as long as: a. the expected marginal benefits are less than the expected marginal costs. b. the expected marginal benefits are greater than the expected marginal costs. c. total expected costs exceed total expected benefits
d. total expected benefits exceed total expected costs.
Suppose that prices in France increase by 8 percent while prices in the United States remain relatively stable. We would expect that (on the foreign exchange market) the demand for U.S. dollars will __________ and the supply of U.S. dollars will __________
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase
Which of the following would be expected if the tariff on foreign-produced shoes were decreased?
a. The domestic price of shoes would fall.
b. The supply of foreign shoes to the domestic market would decline, causing shoe prices to rise.
c. The number of unemployed workers in the domestic shoe industry would decline.
d. The demand for foreign-produced shoes would decrease, causing the price of shoes to increase in other nations.