If an economy is producing at a point on the production possibilities curve it represents:
a. full employment of existing resources.
b. the gains from trade that an economy can enjoy
c. the maximum amount of two goods that can be produced with existing resources.
d. decreasing opportunity costs of producing both goods.
e. overutilization of existing resources.
a
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During 2001-2004, the Fed injected additional reserves into the banking system, which reduced the federal funds rate and other short-term interest rates. Other things constant, what is the most likely short-run impact of this policy?
a. an increase in the rate of unemployment b. a reduction in the growth of employment c. an increase in aggregate demand and real GDP d. a reduction in the long-run rate of inflation
Businesses in Ouida’s country are working to turn dry scrub land into land that can be farmed. What are these businesses investing in?
a. natural resources b. technology c. human capital d. physical capital
Consider an unregulated monopoly in Figure 8.13. Suppose that a second firm enters the market. As a result, if the demand curve facing each firm lies entirely below the long-run average cost curve:
A. only one of the two firms can make a positive economic profit. B. both the first and the second firm make positive economic profits. C. neither firm makes a positive economic profit. D. There is not sufficient information.
One possible source of the first Eurocurrency account was a result of the
A) Cold War. B) Second World War. C) Oil Crisis in the 1970s. D) the Erie Canal.