Refer to Figure 2-11. The shift of the production possibilities frontier from A to B can best be described as
a. Simultaneous Technological advances in the book and DVD industries.
b. Reallocation of resources away from the production of DVDs and toward the production of books.
c. Economic growth
D. All of the above are correct
Answer: c. Economic Growth
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In which of the following industries are workers least likely to suffer from cyclical unemployment?
a. Construction industry b. Automobile manufacturing c. Apparel industry d. Education e. Tourism
NAFTA is an example of a multilateral approach to achieving free trade
a. True b. False Indicate whether the statement is true or false
Based on the graph showing equilibrium output and price for a monopolist, if a monopolist realizes it is producing at QM, it should ______.
a. reduce output to Q1
b. increase output to Q2
c. maintain output at QM
d. set output at QD
The indirect effect of an increase in the money supply is to
A. lower interest rates, which stimulates both investment and consumption spending. B. pay off a portion of the public debt. C. put more cash in people's pockets, thereby increasing aggregate demand. D. raise interest rates so people will save more.