If opportunity costs are constant, the production possibilities frontier would be graphed as
A) a negatively sloped straight line.
B) a ray from the origin.
C) a positively sloped straight line.
D) a negatively sloped curve bowed in toward the origin.
A
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If a shift in aggregate demand only affects real Gross Domestic Product (GDP), then the short-run aggregate supply (SRAS) curve must be
A. downward sloping. B. horizontal. C. vertical. D. upward sloping.
In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.
Expansionary monetary policy:
A. raises interest rates, raising both investment and net exports. B. lowers interest rates, increasing investment and decreasing net exports. C. lowers interest rates, increasing both investment and net exports. D. raises interest rates, decreasing both investment and net exports.
In reality, perfect price discrimination is
a. used by about 75 percent of all monopolies. b. used by about 50 percent of all monopolies. c. seldom used by monopolies because it leads to lower profits. d. rarely possible.