The bowed outward shape of the production possibilities frontier in the above figure indicates that
A) some resources are better suited for producing computers.
B) the opportunity cost of producing more computers decreases as more computers are produced.
C) computer technology is subject to the principle of decreasing costs.
D) All of the above answers are correct.
A
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The short-run aggregate supply curve shows ________ while the long-run aggregate supply curve shows ________.
A. output; aggregate spending B. potential output; aggregate spending C. the current inflation rate; potential output D. potential output; the current inflation rate
If an increase in income results in a rightward parallel shift of the demand curve, then at any given price, the price elasticity of demand will have
A) increased in absolute terms. B) decreased in absolute terms. C) remained unchanged. D) increased, decreased or stayed the same. It cannot be determined.
Assume that Frantek Bass has an MPC equal to 0.80 . If he normally earns $50,000 per year, but is laid off for part of 2000 and only earns $30,000 . his saving for 2000 . according to Milton Friedman, will be
a. $24,000 b. $10,000 c. $6,000 d. –$6,000 e. –$10,000
If the CPI in 2015 was 114.7 and the CPI in 2016 was 124.5, then the rate of inflation between 2015 and 2016 was
A. 7.9%. B. 8.5%. C. 9.8%. D. 14.7%.