When the economy reaches a trough in a business cycle, which of the following will occur?
A) Income, production, and employment will begin to rise.
B) Income and production will rise, but employment will continue to fall.
C) Employment rises, but income and production will continue to fall.
D) Income, production, and employment will continue to fall.
A
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Consider the production possibilities frontier displayed in the figure shown. The opportunity cost of a bushel of apples is:
A. 3/20 watermelons.
B. 1/20 watermelons.
C. 1/40 watermelons.
D. 1/30 watermelons.
Hugo consumes a certain combination of pizzas and cola. However, he can afford more of cola, given his budget constraint. Graphically, this would imply that his choice lies: a. on the budget constraint
b. within the budget constraint. c. outside the budget constraint. d. on one of the axes.
Which of the following is not true about excess reserves?
A. They change when the reserve requirement changes. B. They are equal to the required reserve ratio times transactions deposits. C. They are bank reserves beyond what the bank is required to hold. D. They represent the dollars an individual bank can lend.
Which of the following is said to occur when a firm lowers its price to limit the decline in the quantity sold during a period of recession?
A. Persistent dumping B. Predatory dumping C. Cyclical dumping D. Seasonal dumping