Better ideas cause the economy's production function to:
A) rotate upward.
B) rotate downward.
C) shift upward.
D) shift downward.
Answer: A) rotate upward.
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According to the monetarists
A. the supply of money changes in response to changes in the levels of real output and prices. B. changes in the velocity of money are more important than changes in the money supply in causing the level of economic activity to change. C. an expansionary fiscal policy will lower interest rates and thereby tend to over stimulate investment and consumption. D. changes in the money supply are the primary cause of changes in the price level.
Arrow's impossibility theorem illustrates the difficulties in creating the perfect voting system
a. True b. False Indicate whether the statement is true or false
In the U.S. economy, labor receives
A. the lowest share of income. B. the highest share of income. C. about a quarter of income. D. about three-quarters of income.
When the two-good production and trade models are extended from a given country to the entire world
A. the price of both goods rises for the country going global. B. the cost of producing the exported good rises for the country going global. C. the price of the imported good falls to the country's consumers. D. the price of the exported good falls for the country going global.