Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If a war reduces the country's capital stock by 40%, the new equilibrium is most likely to be
A) point b.
B) point h.
C) point f.
D) point d.
E) point e.
A
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Consider the demand curves for soft drinks shown in the figure above. Initially the economy is at point a. If people come to expect that the price of a soft drink will increase in the future, there will be a movement to a point such as
A) none of the points illustrated. B) b. C) c. D) d.
Which of the following indicates that the U.S. economy has become more stable since 1950?
A) less severe fluctuations in real GDP B) longer recessions C) shorter expansions D) All of the above indicate that the U.S. economy has become more stable since 1950.
In many countries, an exchange-rate peg substitutes for ________
A) speculative attacks B) an export-oriented sector C) discretionary monetary policy D) capital controls
If price is equal to short-run average variable cost, this price is known as
a. the break-even price. b. the profit-maximizing price. c. the shutdown price. d. the revenue-maximizing price.