A devastating earthquake destroys ten percent of the population in California. As a result:
a. California's production possibility curve shifts outward
b. California moves up and to the left along its production possibilities curve.
c. California moves down and to the right along its production possibilities curve.
d. California's production possibility curve shifts inward.
d
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Progressive income taxes are designed to
A. make the distribution of income less equal. B. leave unchanged the distribution of income. C. let the market determine the distribution of income after taxes. D. make the distribution of income more equal.
Economists define liquidity as
A) the difference between the return on the asset and the return on a long-term U.S. Treasury bond. B) the fraction the asset makes up of an investor's portfolio. C) the ease with which an asset can be exchanged for money. D) the difference between the total demand for an asset and the total supply of the asset.
Which of the following is a residual reward that accrues to business decision makers who use resources so as to increase their value?
a. opportunity cost b. earnings of employees c. economic profit d. interest earnings of corporate bondholders
Which of the following most clearly illustrates the concept of "derived demand"?
a. An increase in the price of steak causes the demand for poultry to increase. b. An increase in the demand for new houses leads to an increase in the demand for construction workers. c. An increase in consumer income leads to an increase in the demand for services provided by the government. d. An increase in the demand for new cars causes the demand for used automobiles to rise.