Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis. As a country moves along the frontier closer to the vertical axis,
A) the opportunity cost of producing jeans decreases.
B) inefficient production occurs.
C) the opportunity cost of producing jeans increases.
D) there are fewer tradeoffs.
E) the opportunity cost of producing shoes increases.
C
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The short-run aggregate supply curve in modern Keynesian analysis is
A) downward sloping. B) horizontal. C) vertical. D) upward sloping.
The balanced budget multiplier is based on the point that the ________ multiplier is larger than the ________ multiplier so that an equal increase in government expenditure and taxes ________ aggregate demand
A) tax; expenditure; does not change B) expenditure; tax; does not change C) expenditure; tax; decreases D) expenditure; tax; increases E) tax; expenditure; decreases
Goods that can be bought in any quantity desired are called
A) divisible goods. B) indivisible goods. C) invisible goods. D) inferior goods.
The government's economic programs and policies in the United States _____
a. are determined mostly by professional economists b. are largely determined by looking at what other countries are doing c. are a product of a democratic political system d. are largely determined by corporations