What does a production possibilities frontier represent?
The combinations of output that an economy can produce.
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Among the answers given below, which one does not explain why an economy grows?
a. growth of population and the labor force b. capital accumulation and capital deepening c. technological change d. high death rates and high birth rates e. increases in skill levels for workers
Which of the following goods are likely to have a positive cross-price elasticity?
A. Butter and margarine B. Pepsi and pizza C. Peanut butter and jelly D. Tires and automobiles
When there is overproduction in a market,
A. there is excess quantity demanded. B. the total of consumer and producer surplus is maximized. C. market price is too low. D. there is a deadweight loss.
In the traditional Keynesian model, if the government cuts taxes, then
A) both consumption and real Gross Domestic Product (GDP) will increase. B) both consumption and real Gross Domestic Product (GDP) will decrease. C) consumption will increase but Gross Domestic Product (GDP) will decrease. D) consumption will decrease but Gross Domestic Product (GDP) will increase.