Refer to Table 2-5. Assume Nadia's Neckware only produces ascots and bowties. A combination of 24 ascots and 12 bowties would appear
A) along Nadia's production possibilities frontier.
B) inside Nadia's production possibilities frontier.
C) outside Nadia's production possibilities frontier.
D) at the horizontal intercept of Nadia's production possibilities frontier.
C
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If aggregate hours are 100 billion hours and labor productivity is $40 an hour, than real GDP equals
A) $100 billion. B) $40 billion. C) $100 trillion. D) $2.5 trillion. E) $4 trillion.
Monetarists believe that to promote long-term economic growth, national governments should:
a. Increase government spending and reduce taxes. b. Reduce government spending and increase taxes. c. Promote research and development with federal funds. d. Impose tariffs and quotas until the nation is on its feet. e. Create stable and predictable political environments and encourage competitive markets.
Social Security payments:
A. began to be adjusted to 5% above the poverty line in 1987. B. are not adjusted using COLAs. C. are now indexed using the PPI. D. began to be indexed to inflation in 1975.
If the demand of a good is inversely related to income, it must be
A) a bad good. B) an inferior good. C) a normal good. D) an everyday product.