If the production of 2,000 cars and 500 tons of corn during a year is economically efficient for a country which produces only these two products, which of the following conclusions can be drawn?
a. It satisfies domestic demand completely.
b. The production of cars can not be increased without reducing the production of corn.
c. The reallocation of resources to change the production level must reduce production of both goods.
d. It is possible to increase the production of both if resources can be reallocated.
B
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The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent
The "Buy American" provision would ________ consumer surplus and ________ producer surplus for industries that produced protected products in the United States. A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
If the money supply is $900, velocity is 6, then in the equation of exchange, PQ is
A) $150. B) $1,500. C) $2,400. D) $3,600.
Both Keynesians and non-Keynesians now recognize
What will be an ideal response?
What does research into new technologies lead to?
a) It provides positive externalities because it creates knowledge others can use. b) It results in negative externalities because too many resources are used for the small benefits received by society. c) It results in negative externalities because government funding for research leads to cuts in government spending in other areas. d) It provides positive externalities because it increases profits for the company that receives government funding for research.