An increase in productivity as a result of a new technology would cause the production possibilities frontier to:
A. not move until society chooses to move it.
B. shift out.
C. become more meaningful in policy decisions.
D. shift in.
Answer: B
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What mechanism assures that firms produce outputs that consumers actually desire?
A. governmental regulations on the mix of outputs B. altruism C. the desire for profit D. a desire to serve others without thought of reward E. All of the responses are correct.
The American birth rate in 1860–1910
(a) was kept high by the tendency of immigrant children to have large families. (b) increased steadily. (c) declined, on average. (d) rose dramatically after the Civil War due to the large numbers of immigrants having children in the U.S. to get U.S. citizenship.
Last year, 1,000 cases of bottled water were sold at $5; this year, 1,200 cases were sold at $7 . These data could be explained by the
a. supply and demand curves shifting to the right. b. supply and demand curves shifting to the left. c. supply curve shifting to the left, with no change in demand. d. demand curve shifting to the right, with no change in supply.
Which of the following calculates the cost of purchasing a specific bundle of goods and services in each country and uses this measure to convert the incomes of different countries to a common currency so they may be more accurately compared?
a. the consumer price parity (CPP) method b. the purchasing power parity (PPP) method c. the GDP deflator exchange (GDPDE) method d. the inflation conversion factor (ICF) method