Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. Macroland's production possibility frontier is bowed out from the origin due to
A. decreasing opportunity costs.
B. unemployment.
C. specialized resources.
D. trade.
Answer: C
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Refer to Table 23-4. Given the consumption schedule in the table above, the marginal propensity to consume is
A) 0.5. B) 0.6. C) 0.75. D) 0.8.
High inflation can spiral out of control when
A) expected inflation increases nominal interest rates, causing the Fed to buy bonds, increasing the money supply and further increasing inflation. B) expected inflation decreases nominal interest rates, causing the Fed to buy bonds, increasing the money supply and further increasing inflation. C) expected inflation increases nominal interest rates, causing the Fed to sell bonds, increasing the money supply and further increasing inflation. D) expected inflation decreases nominal interest rates, causing the Fed to sell bonds, increasing the money supply and further increasing inflation.
The unemployment rate measures, at a point in time, the ________
A) percentage of workers who do not have a job B) percentage of workers who do not have a job but are looking for work C) percentage of workers who stop working D) percentage of workers who are looking for work E) none of the above
The basic difference between mixed and pure bundling is that
A) in pure bundling, buyers can only buy a collection of goods, while with mixed bundling, they can buy the collection or the components of the collection separately. B) in pure bundling, buyers must buy a collection of goods, while in mixed bundling, buyers pay different prices for the same collection. C) price elasticities are generally elastic when pure bundling is used while unitary elasticity is prevalent when mixed bundling is used. D) the costs of production vary between the two types of bundling.