Which of the following statements about movement along the production possibilities
curve in the figure above is FALSE?
A) An additional computer can be produced only if fewer televisions are produced.
B) The trade—off between computers and televisions is not constant.
C) Society cannot have more of both goods at the same time.
D) There are no opportunity costs involved in choosing one point on the curve over all other points.
D) There are no opportunity costs involved in choosing one point on the curve over all other points.
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According to this Application, if the volatility of energy prices led to expectations of declining real GDP, investment spending at that time would tend to decrease
This relationship between the decrease in investment spending and the expected decline in real GDP would be expressed by the A) present value theory. B) liquidity principle. C) accelerator theory. D) real-nominal principle.
Which of the following is most important for the successful functioning of any economy?
A) Clearly understood and generally accepted rules. B) Common and reasonably specific goals for people to pursue. C) Greed. D) Low taxes relative to income. E) Sufficient purchasing power to buy all of an economy's goods and services.
The process by which productivity raises the average standard of living is referred to as
A) long-run economic growth. B) labor productivity. C) population growth analysis. D) the economic prosperity hypothesis.
Discuss how unions affect prices indirectly.
What will be an ideal response?