Which of the following would encourage an outward shift of the PPF?
(a) Outward emigration of entrepreneurs;
(b) A decrease in demand as the economy slips into recession;
(c) The level of capital investment falls;
(d) Inward migration of skilled workers.
Answer: (d) Inward migration of skilled workers.
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Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, India's most likely future PPF is ________ and France's most likely future PPF is ________
A) PPF1; PPF1 B) PPF2; PPF2 C) PPF0; PPF0 D) PPF2; PPF1 E) PPF1; PPF2
Friedmania is a country in which the quantity theory of money operates. The country has a constant population, capital stock, and technology so real GDP does not change
In 2014, real GDP was $500 million, the price level, measured by the GDP deflator, was 150 and the velocity of circulation of money was 10. (Because the price level is measured by the GDP deflator, it must be divided by 100 before it is used in the equation of exchange.) In 2015, the quantity of money increased by 20 percent. a) What was the quantity of money in 2014? b) What was the velocity of circulation in 2015? c) What was the price level in 2015?
Would a law that required the federal government to balance the budget on an annual basis contribute to more or less stability in the economy? Why?
What will be an ideal response?
When consumption of a good or service produces benefits or costs that are not reflected in the market price for the good, this is known as a(n):
A. externality. B. common pool problem. C. nonexcludable resource. D. public good.