Which of the following is definitely true if the production possibilities curve shifts outward?
A. Aggregate supply has increased.
B. Population has increased.
C. GDP per capita has increased.
D. Inflation has increased.
A. Aggregate supply has increased.
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Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase health insurance?
A) the individual who is trying to purchase the policy B) the employer of the individual C) the health insurance company D) All parties in the health insurance market have access to the same amount of information.
One problem that haunts most antitrust litigation is that: a. the government seldom wins
b. the appearance of vigorous competition resembles acts that undermine competition. c. it has the effect of preventing firms from being tough on their rivals. d. the defendant firm may be destroyed.
Which of the following would you need to know to calculate the unemployment rate?
a. the size of the active military b. the number of discouraged workers c. the size of the civilian labor force d. the number of workers still enrolled in high school
One risk of targeting inflation at zero is that ______.
a. it may damage the credibility of the central bank b. deflation may be prevented c. investment spending may reach unsustainable levels d. interest rates may fall too low