Which of the following best represents economic growth?
A. a movement down a given production possibilities curve.
B. an outward or, equivalently, a rightward shift of the production possibilities curve.
C. a movement up a given production possibilities curve.
D. an inward or, equivalently, leftward shift of the production possibilities curve.
Answer: B
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If an isocost line crosses the isoquant twice, a cost minimizing firm will
A) use a different isocost line to select the bundle of inputs. B) use the input bundle associated with the intersection on the higher point of the isoquant. C) use the input bundle associated with the intersection on the lower point of the isoquant. D) Both B and C.
Which of the following is true? a. At the natural rate of unemployment, the economy is considered to be at full employment
b. At full employment, the economy is producing at its potential output. c. If unemployment is greater than its natural rate, the economy is producing at less than its potential output. d. All of the above are true.
Import quotas are
a. methods for reducing imports by limiting the quantity of goods that can enter the country each year. b. voluntary agreements by exporting countries to limit sales in a foreign country. c. subsidies to foreign producers to encourage them to trade. d. None of these.
The U.S. government has more than 10,000 tariff classifications and more than half of them are subject to interpretation.
a. true b. false