Which of the following events create an outward shift of the production possibilities curve?
A. The United States moves resources from the production of goods for domestic production to the production of goods for export.
B. Tax reductions reduce the cost and increase the amount of investment in factories, machinery, and research and development.
C. There is an migration of young people to another country where there is more political freedom.
D. The unemployment rate falls from 33 percent to 12 percent.
Answer: B
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The above figure shows a graph of the market for pizzas in a large town. At a price of $14, there will be
A) no pizzas supplied. B) equilibrium. C) excess supply. D) excess demand.
As a researcher, which aspect of the results would be of greatest concern?
A) the negative value of the constant (i.e., -6,500) B) the relatively low impact of the competitor's price C) the fact that not all of the variables are statistically significant D) the poor fit of the regression line
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
The European Central Bank is located in ______, probably as a result of ______ influence on European monetary policy because of its above-average economic performance.
A) London; Britain's B) Paris; France's C) Frankfurt; Germany's D) Geneva; Switzerland's