A nation can produce two products: tanks and autos. The table below is the nation's production possibilities:
Given the production possibilities schedule above, a combination of 3 tanks and 350 autos:
A. Illustrates the tradeoff between tanks and autos
B. Is attainable but entails some unemployment or inefficient use of society's resources
C. Cannot be produced by society, given its current resources and production technology
D. Is not attainable because this combination is not listed in the schedule
Answer: B
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Suppose Warren Buffet withdraws $1 million from his checking account at Chase Bank. If the required reserve ratio is 20 percent, what is the maximum change in deposits in the banking system?
A) -$5 million B) -$4 million C) -$200,000 D) $1 million E) $5 million
Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then according to the Heckscher-Ohlin Theorem, Chile should export goods that
A) intensively use labor input. B) intensively use capital input. C) intensively use natural resources. D) use capital and labor in about equal proportions.
Which of the following schools of thought believes that the major source of the macroeconomic problems are the disequilibria in the private labor and goods market?
a. Keynesians and new Keynesians b. Only monetarists c. Only new classical economists d. Monetarists and new classical economists e. Monetarists and Keynesians
Which of the following is not a form of air pollution?
A. The greenhouse effect. B. Smog. C. Acid rain. D. Thermal pollution.