Refer to the graph. Other things equal, an increase in the price of substitute resource would cause a:
A. shift from D 2 to D 3 assuming the substitution effect exceeds the output effect.
B. move from a to b on D 1 .
C. move from b to a on D 1 .
D. shift from D 3 to D 2 assuming the substitution effect exceeds the output effect.
A. shift from D 2 to D 3 assuming the substitution effect exceeds the output effect.
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On-the-job-training is an example of
A) increasing labor force participation. B) investment in human capital. C) investment in physical capital. D) technological change.
GDP can increase from one year to the next by:
A) increases in prices while quantities of goods and services are constant. B) increases in the quantities of goods and services produced while prices remain constant. C) both prices and quantities of goods and services increase. D) all of the above.
Which of the following statements about a movement along the production possibilities curve in the above figure is FALSE?
A) An additional computer can be produced only if fewer televisions are produced. B) The trade-off between computers and televisions is not constant. C) Society cannot have more of both goods at the same time. D) There are no opportunity costs involved in choosing one point on the curve over all other points.
If the consumer price index (CPI) rises over a year from 220 to 230, then the inflation rate is 10 percent
a. True b. False Indicate whether the statement is true or false