Assuming the inner curve is the United States' current production possibilities frontier, the United States' economy usually operates at _____.
A. Point P
B. Point O
C. Point N
D. Point L
B. Point O
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Governments sometimes erect barriers to trade other than tariffs and quotas. Which of the following is not an example of this type of trade barrier?
A) a requirement that the U.S. government buy military uniforms only from U.S. manufacturers B) a requirement that imports meet health and safety requirements C) restrictions on imports for national security reasons D) a requirement that the employees of domestic firms that engage in foreign trade pay income taxes
Endogenous growth models
a. predict absolute convergence. b. predict conditional convergence. c. do not predict convergence. d. predict convergence among rich countries but not poor countries.
Which of the following accurately explains a difference between the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve?
a. The LRAS curve reflects constant input prices with adjustable output prices, whereas the SRAS curve reflects adjustable input and output prices. b. The LRAS curve reflects constant output prices with adjustable input prices, whereas the SRAS curve reflect constant output prices. c. The SRAS curve reflects constant input prices with adjustable output prices, whereas the LRAS curve reflects adjustable input and output prices. d. The SRAS curve reflects constant output prices with adjustable input prices, whereas the LRAS curve reflects constant input and output prices.
Suppose that before S1 shifted, a typhoon destroyed a huge shipment of Quality Unlimited HD televisions, thereby reducing the supply of this product in the United States. Considering this scenario, what would be the new position of S2, and how else would this graph change?
a. S2 would shift left of S1, and Q1 would be indeterminate.
b. S2 would shift right of S1, and E2 would move even further down.
c. S2 would shift right of S1, and Q2 would move even further to the right.
d. S2 would shift left of S1, and P2 would be higher than P1.