Which of the following trade-offs does the production possibilities frontier illustrate?
a. If an economy wants to increase efficiency in production, then it must sacrifice equality in consumption.
b. Once an economy has reached the efficient points on its production possibilities frontier, the only way of getting more of one good is to get less of the other.
c. For an economy to consume more of one good, it must stop consuming the other good entirely.
d. For an economy to produce and consume goods, it must sacrifice environmental quality.
b
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An example of a heuristic is:
A. predatory lending. B. a rule of thumb. C. common sense. D. a framing device.
If the number of dollars needed to buy a representative basket of goods falls, the price level
a. falls, so the value of money falls. b. falls, so the value of money rises. c. rises, so the value of money falls. d. rises, so the value of money rises.
The Trial Balance:
a. Lists all the company's accounts and ending balances b. Is printed before and after making adjustments c. Verifies the accounting system balances d. All of these
Suppose the economy was initially in a long-run equilibrium. Then the world economy expands so that foreign income rises. U.S. aggregate demand ... and eventually the money wage rate ...
What will be an ideal response?