Refer to Figure 11-4. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy
If the United States decided to cut its support of university research in half, this would cause a movement from
A) B to E. B) B to D. C) B to A. D) B to C.
A
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If the Federal Open Market Committee wants to decrease the money supply through open market operations it will
A) buy U.S. Treasury Securities. B) decrease the discount rate. C) sell U.S. Treasury Securities. D) increase the discount rate.
When the goods market is returning to equilibrium following a decrease in the real interest rate, ________
A) saving and output are both rising B) saving and output are both declining C) saving is rising, while output declines D) all of the above E) none of the above
Markets may fail to allocate resources efficiently when property rights are not well established
a. True b. False Indicate whether the statement is true or false
The term excess capacity refers to the fact that a firm operates on the upward-sloping portion of its average-total-cost curve
a. True b. False Indicate whether the statement is true or false