The economy was at point A producing 100X and 200Y. It moved to point B where it produces 200X and 300Y. It follows that
A) point A may have been a point below the economy's PPF, while point B may lie on the PPF.
B) the economy's PPF could have shifted outward and point A was a point on the economy's old PPF.
C) the economy has moved from one point on its PPF to another point on the same PPF.
D) a or b
E) a or c
D
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Refer to Scenario 3. The marginal cost of producing the sixth unit of output is:
A) $33.33 (approximate). B) $55. C) $200. D) $250.
When we add the up value of all capital goods, we determine
a. private investment b. the capital stock c. a flow phenomenon d. GDP e. inventory
Which of the following is an example of a positive externality?
a. Sue not catching the flu because she got a flu vaccine b. Mary not catching the flu from Sue because Sue got a flu vaccine c. Sue catching the flu because she did not get a flu vaccine d. Mary catching the flu from Sue because Sue did not get a flu vaccine
Quantitative easing is:
A. asset purchases that shift the composition of the Fed's balance sheet. B. expansion of the demand for aggregate reserves to drive down the IOER. C. statements today about policy targets in the future. D. expansion of the supply of aggregate reserves beyond the amount needed to maintain the policy rate target.