The production possibilities curve is a graph of:
A. The maximum amounts of labor and capital resources available for production
B. Various combinations of goods and services among which consumers are indifferent
C. The maximum combinations of products that can be produced
D. The maximum amount of capital and labor that the economy can employ
Answer: C
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Q: How many economists does it take to change a light bulb?
A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right. This joke represents the view of A) classical economists. B) economists who contend that money illusion never occurs. C) Keynesian economists. D) economists who conclude that wages and prices are very flexible.
One implication of an empirical investigation of the Marshall-Lerner condition is that, in the ________, a real ________ in a nation's currency is likely to ________ the country's current account balance
A) long-run; depreciation; improve B) short-run; depreciation; improve C) long-run; appreciation; improve D) short-run; appreciation; improve E) short-run but not the long-run; appreciation; improve
When households have very low savings ________
A) investment decreases B) they are less able to cope with severe economic downturns C) bankruptcies increase D) all of the above E) none of the above
A person who quits working because of a variety of excuses such as "unbearable office politics" or "difficulty to work in that environment" is described as being part of
a. discouraged workers b. counterfeit unemployment c. the underemployed d. displaced unemployment e. frictional unemployment