The slope of a production possibility frontier shows the _____
a. total cost of producing a good
b. opportunity cost of expanding production of one good
c. price of the good produced along the horizontal axis
d. total resources available in the economy
b
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Explain the business cycle by describing the phases and turning points
What will be an ideal response?
Refer to Figure 4-5. What is the area that represents the producer surplus after the imposition of the ceiling?
A) D + F + G B) F C) F + G D) A + B + D + F + G
The average difference over a long period of the interest rate on long-term bonds and the interest rate on the short-term federal funds rate is called
A) risk premium. B) term premium. C) FED's premium. D) monetary premium.
Which of the following is true? a. At below the natural rate of unemployment, the economy is considered to be beyond full employment. b. At below full employment, the economy is producing more than potential output
c. At below full employment, unemployment would be below its natural rate. d. All of the above are true.