Movement from one point on the production possibilities curve to another leads to more of both goods being produced
a. True
b. False
Indicate whether the statement is true or false
False
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Business taxes increase. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
A positive income elasticity of demand coefficient indicates that:
A. two products are complementary goods. B. two products are substitute goods. C. a product is a normal good. D. a product is an inferior good.
Internationally, recessions
a) are likely to begin in the smallest economies and spread to larger ones b) are isolated events, uncorrelated across countries c) in one region mean that world demand has shifted elsewhere, so other countries do not fall prey to downturns at the same time d) are especially contagious among trade partners e) are most pronounced among Socialist countries
Suppose there are two perfectly competitive industries with similar numbers of firms but where one industry consists of N identical firms while the second consists of N firms with differing costs. Compared to the short-run supply curve of the industry with identical firms, the short-run supply curve of the differing cost industry will tend to be
A) steeper at higher prices. B) flatter at higher prices. C) steeper at lower prices. D) flatter at lower prices.