If investment changes because of a change in a factor other than the price level, then the
A) economy moves from one point on an AD curve to another point on the same curve.
B) AD curve shifts.
C) economy moves from one point on a short-run aggregate supply (SRAS) curve to another point on the same curve.
D) SRAS curve shifts.
E) none of the above
B
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Suppose that the country of Pacifica imposes a quota on bananas. The reason that the government imposed this trade restriction could be
A) that the government of Pacifica needs to increase its revenue. B) lobbying from banana farmers in Pacifica. C) comparative advantage. D) Both answers A and B are correct.
Which of the following would shift a nation’s entire production possibilities curve outward?
a. moving from less than full employment to full employment. b. developing a more efficient technology. c. more efficiently allocating productive resources already available. d. All of these.
Up until the early 1880s, there was no federal control over private activities
Indicate whether the statement is true or false
A dominant strategy is one that
a. makes every player better off b. makes at least one player better off without hurting the competitiveness of any other player c. increases the total payoff for one player d. is best for a player, regardless of what strategy other players follow e. leads to quicker convergence to market equilibrium