Which of the following statements is NOT an assumption underlying the production possibilities curve?
A) Resources are fully and efficiently employed.
B) Technology is fixed.
C) Production occurs over some specified time period.
D) The amount of resources available for production can be changed quickly.
Answer: D
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When a bank's loans are written off, then the bank's:
A. Ability to make more new loans increases B. Ability to make new loans is restricted C. Assets will grow while its liabilities stay the same D. Assets stay the same while its liabilities grow
An increase in interest rates results in a(n) ________ in the required rate of return to hold stocks and ________ current stock prices.
A. decrease; reduces B. decrease; raises C. increase; reduces D. increase; raises
A predominant view among Federal Reserve officials is that
A) the Phillips curve is unimportant. B) the Phillips curve helps us forecast inflation. C) the Phillips curve helps us forecast the nominal interest rate. D) the Phillips curve does not exist in the data.
Oligopoly firms acting individually may seek to gain profits in which of the following ways?
a. By expanding levels of output and cutting prices b. By selling products that are distinctive in some way c. By having a mini-monopoly on a brand name d. By decreasing production and raising prices