If a society is operating on its production possibilities frontier, and then decides to produce less health care,
a. its standard of living will fall
b. its standard of living will improve
c. some of its resources will become unemployed
d. it will be able to produce more of some other good or service
e. the opportunity cost of producing health care will rise
D
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In a market with imperfect product competition, the MRP declines because
a. the MP declines with each worker hired. b. the price of output falls as output increases. c. both output price and the MP decline as output increases. d. MC declines as output increases.
According to Keynesians, an increase in production when the money supply is fixed will
a. increase the transactions demand for money and that will cause the velocity of money to increase b. increase the transactions demand for money and that will cause the velocity of money to decrease c. decrease the transactions demand for money and that will cause the velocity of money to increase d. decrease the transactions demand for money and that will cause the velocity of money to decrease e. increase the speculative demand for money and that will cause the velocity of money to increase
While traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes to stimulate the economy, what are some of the reasons why tax cuts might be preferred to increased government spending?
Christina Romer's criticism of the belief that business cycles had moderated since World War II depended on the fact that
A. economists had left out important components of GDP, such as wholesale and retail distribution, transportation, and services, in their pre-World War II estimates. B. economists had ignored the roles of the government and international trade in mitigating economic fluctuations prior to World War II. C. estimates of the timing of business cycles since World War II had been inaccurate. D. misuse of historical data had caused economists to understate the size of cyclical fluctuations in the post-World War II era.