With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?
a. passage of legislation reducing the workweek to 30 hours
b. instituting a tax policy encouraging consumption at the expense of investment
c. instituting a tax policy encouraging investment at the expense of consumption
d. an increase in the marginal income tax rate, which would reduce the work effort of individuals
C
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________ unemployment arises from a mismatch of skills and jobs
A) Cyclical B) Frictional C) Structural D) Inflationary
Long distance telephone service has become a competitive market. The average cost per call is $0.05 a minute, and it's declining. The likely reason for the declining price for long distance service is:
a. Governmental pressure to lower the price b. Reduced demand for long distance service c. Entry into this industry pushes prices down d. Lower price for a barrel of crude oil e. Increased cost of providing long distance service
For monetarists, the main cause of economic fluctuations is represented by changes in
a. the levels of household debt. b. investment. c. the growth rate of the quantity of money. d.consumption expenditure.
Which statement is true?
A. In the short run and the long run the perfect competitor will break-even. B. In the short run and the long run the perfect competitor will make a profit. C. In the short run the perfect competitor may make a profit or take a loss. D. In the long run the perfect competitor will make a profit, but in the short run she will break-even.