A devastating war that kills people and destroys buildings will:
A: shift the PPF outward
B: shift the PPF inward
C: move the economy from one point to another along the PPF
D: move the economy to a point beyond the PPF
E: move the economy to a point inside the PPF
Answer: B: shift the PPF inward
FEEDBACK:
War destroys resources (such as labor and capital), which would decrease the production possibilities of this economy and shift the entire curve inward.
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Local governments usually rely on the ________ tax to fund schools, libraries, and public services such as police and fire protection
A) payroll B) excise C) value-added D) property
What is the most likely consequence when people's preference for current consumption rises in relation to future consumption?
a. Interest rates will fall, and the rate of extraction of exhaustible natural resources will decrease. b. Interest rates will fall, and the rate of extraction of exhaustible natural resources will increase. c. Interest rates will rise, and the rate of extraction of exhaustible natural resources will decrease. d. Interest rates will rise, and the rate of extraction of exhaustible natural resources will increase. e. Interest rates will fall, and there will be no effect on the rate of extraction of exhaustible natural resources.
The Board of Governors is made up of experts in:
A. fiscal policy. B. public policy. C. monetary policy. D. information systems
The United States Postal Service is an example of a monopoly created by
a. government franchise. b. copyright. c. control of scarce inputs. d. rent-seeking behavior.