The neutrality of money is the idea that:
A. virtual money has a neutral effect in the economy.
B. hard money has a neutral effect in the economy.
C. aggregate price levels do not affect real outcomes in the economy.
D. in real terms, it makes no difference who is spending each dollar.
Answer: C
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The production possibilities frontier is used by economists to depict
A) the strictly financial costs of production. B) the opportunity costs of production. C) the strictly financial benefits of production. D) the opportunity benefits of production.
If the consumer price index in 2007 is 25 times that of 1860, and a slave cost $2,000 in 1860, how much is that in terms of 2007 dollars?
a. $12,500 b. $25,000 c. $50,000 d. $75,000 e. $750,000
The consumption function is the relationship between consumption and:
A. total spending. B. disposable income. C. investment. D. planned aggregate expenditure.
?Wind ChimesSun DialsDeena912Artie68
Consider two individuals, Artie and Deena, who produce wind chimes and sun dials. Artie's and Deena's weekly productivity are shown in Table 18.4. Which of the following is TRUE?
A. Deena has an absolute advantage in producing both goods, and a comparative advantage in producing wind chimes. B. Deena has an absolute advantage in producing both goods, and a comparative advantage in producing sun dials. C. Deena has an absolute and a comparative advantage in producing both goods. D. Deena has an absolute advantage in producing both goods, but no one has a comparative advantage in producing either good.