Which of the following is true of the production possibilities curve?
a. It assumes a fixed level of technology. b. It assumes resources are fixed.
c. It assumes resources are fully employed. d. All of these are correct.
d
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The current exchange rate system for most currencies is described most accurately as one of
A. fixed exchange rates. B. freely flexible exchange rates. C. gold standard rates. D. dirty or managed floating.
Critics of supply-side economics argue that
A. tax cuts do not affect supply, only demand. B. supply-siders exaggerate the effects of tax cuts. C. incentives have no effect on behavior. D. the goals of supply-siders are not supported by most economists.
A very small portion of government expenditures is financed by taxes.
A. True B. False C. Uncertain
According to the quantity theory of money, an increase in the money supply leads to:
A. a decrease in prices, as there are more dollar bills spent on the same number of goods and services. B. an increase in prices, as there are more dollar bills spent on the same number of goods and services. C. an increase in prices, as there are the same dollar bills spent on a greater number of goods and services. D. a decrease in price, as there are the same dollar bills spent on a greater number of goods and services.