Econville suffers from a massive earthquake and tsunami that destroys a fourth of its physical resources. What happens to the production possibility frontier?
a. The production possibility frontier does not change.
b. The production possibility frontier shifts to the right.
c. The production possibility frontier shifts to the left.
d. The production possibility frontier shifts down for capital goods but does not change for consumer goods.
c. The production possibility frontier shifts to the left.
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Refer to the table above. The government sector balance is a
A) $900 billion surplus. B) $500 billion deficit. C) $2,900 billion trade deficit. D) $2,900 billion balanced budget. E) $900 billion deficit.
President Jackson's reasons for vetoing the recharter of the Second Bank of the United States did not include
a. fears that the bank was nearing insolvency. b. questions of constitutionality. c. concerns over foreign ownership. d. fears that the bank could undo democracy itself.
Money exchanges are more efficient than barter because:
a. money exchanges do not require a double coincidence of wants. b. the government guarantees the value of money. c. money usually has an intrinsic value. d. money is backed by a physical commodity. e. opportunity costs are higher with barter trades.
One of the main reasons that people want to limit imports is the
a. fear that imports will decrease the income of Americans. b. idea that cheap foreign labor destroys American jobs. c. concept that if trade benefits another country, it must harm the United States. d. All of the above are correct.