Consider a PPF with consumption goods on the horizontal axis and capital goods on the vertical axis. If the country operates on its PPF near its ________ axis, this country ________
A) vertical; will experience greater economic growth
B) vertical; will not face opportunity costs
C) horizontal; will have a larger chance at economic growth
D) horizontal; faces larger trade offs
E) vertical; is operating at an inefficient point
A
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Any policy that seeks to influence the level of aggregate demand is called
A) productivity policy. B) stabilization policy. C) aggregate policy. D) employment policy.
Price controls:
A. are regulations that sets a maximum or minimum legal price for a particular good. B. allow a market to reach equilibrium. C. prevent a good from being bought or sold. D. All of these are true.
Financial instruments used primarily as stores of value include each of the following, except:
A. home mortgages. B. bonds. C. stocks. D. futures contracts.
A situation in which society may not be able to rank its preferences consistently through paired-choice majority voting refers to:
A. logrolling. B. the paradox of voting. C. the median-voter model. D. the special-interest effect.