Stabilization policy is the name given to government economic policies designed to
a. stabilize the price level.
b. shorten and/or prevent recessions.
c. diminish unemployment.
d. All of the above are correct.
d
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What three assumptions must hold for the allocation of resources among firms to be efficient?
What will be an ideal response?
Absolute advantage is determined by
A) actual differences in labor productivity between countries. B) relative differences in labor productivity between countries. C) Both A and B. D) Neither A nor B.
If income increases, then with regard to expensive cuts of steak, it is likely that the demand curve:
a. shifts to the right. b. shifts to the left. c. becomes steeper. d. does not change. e. becomes flatter.
Which of the following statements is true about the utility possibility frontier (UPF) for two people trying to strike a deal?
a. It limits the moves two individuals can make at different stages of the game. b. It tells us how the point on the UPF that they finally reach might differ with their bargaining tactics. c. It predicts the exact point where the two bargainers will end up irrespective of their bargaining tactics. d. It tells us how the point on the UPF that they finally reach might differ with their personal characteristics