Refer to Exhibit 2-2. If PPF2 is the relevant production possibilities frontier, then point __________ illustrates productive inefficiency.
 ANSWER 8.png)
Answer: C
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Banks act as financial intermediaries by: a. bringing together car buyers and auto dealers
b. bringing together real estate brokers and home buyers. c. printing money for all to use. d. serving the credit needs of borrowers and the security needs of savers. e. selling shares of stock to investors.
This year, Tom sold his 1998 minivan to Honest John's Used Car Emporium for $5,000 . Honest John then sold the van to Bob for $7,000 . How much would be recorded in GDP this year from these transactions?
a. $0 b. $2,000 c. $5,000 d. $7,000 e. $12,000
In the textbook, the prices of the factors of production, returns from alternative activities, technology, seller expectations regarding future prices, and the number of sellers are called:
A) demand shifters. B) supply prices. C) market realities. D) supply shifters.
Draw two SP curves intersecting LP; call the upper intersection point A and the lower point B. The Fed promises to reduce inflation while maintaining natural unemployment. If the public believes the Fed, the economy moves from ________
Then if the Fed turns out to be time-inconsistent, breaking its promise and trading off ________ inflation for lower unemployment, the public revises the way it forms inflation expectations so that in the long run the economy stays at ________. A) A to B, lower, B which is superior to A B) A to B, higher, A which is inferior to B C) A to B, lower, A which is superior to B D) B to A, higher, B which is superior to A E) B to A, lower, B which is inferior to A