If the production possibilities curve is a downward sloping straight line, then
A. technological change has increased.
B. all resources must be perfectly adaptable for alternative uses.
C. production is efficient only when producing at the mid-point.
D. resources are highly specialized, making it difficult to use them for alternative uses.
Answer: B
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The New York Stock Exchange is the only place where a corporation can sell stocks and raise money.
Answer the following statement true (T) or false (F)
If there is unemployment and all businesses are operating at less than full capacity, then
A) society is at the wrong point on the production possibilities curve. B) there are too many workers, and some people ought to leave the labor force. C) we are not experiencing a net social cost to unemployment because it is offset by the capacity levels of the factories. D) society is producing inside its production possibilities curve.
Ceteris paribus, an increase in the current or actual rate of inflation will cause
A) the unemployment rate to decrease (a movement along the short-run Phillips curve). B) the long-run Phillips curve to shift leftward. C) expectations of future inflation rates to be revised downward. D) the short-run Phillips curve to shift upward.
The first Fed chair to hold a press conference was:
A) Paul Volcker B) Alan Greenspan C) Ben Bernanke D) Mario Draghi