Shifts in the aggregate demand curve are caused by:
What will be an ideal response?
changes in spending.
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A producer is said to have an absolute advantage in the production of a good when:
A) the producer can produce more units of the good per hour than another producer. B) the producer has a lower opportunity cost than another producer. C) the producer has a higher opportunity cost than another producer. D) the producer can sell the good at a higher price than another producer.
Which of the following provides health-care coverage to people age 65 and over?
A) Medicaid B) Social Security C) Medicare D) Health-Aid
Under a system of fixed exchange rates, what happens if a country's currency is overvalued?
A) The central bank loses official reserve assets. B) The central bank gains official reserve assets. C) The currency appreciates. D) The exchange rate rises.
For any constant returns production function, the isoquants for Q = 1, Q = 2, Q = 3, etc. will
A. be equally spaced, in that the distance between Q = 1 and Q = 2 is the same as Q = 2 and Q = 3, etc. B. all be inversely proportional to the inputs. C. be straight lines. D. exhibit diminishing returns in the long run.