Suppose the economy is at a point below its institutional production possibilities frontier. To improve this situation, Keynesian economists might propose that the government should __________ expenditures, which will cause the aggregate demand curve to shift to the __________ in an attempt to close this __________ gap
A) decrease; left; inflationary
B) increase; right; inflationary
C) decrease; right; inflationary
D) increase; right; recessionary
E) decrease; left; recessionary
D
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Which of the following statements contains accurate information regarding power sources for manufacturing in the first half of the 19th century?
a. Steam engines were very costly to operate. b. The water turbine was more efficient than the water wheel. c. Coal was adopted more slowly in the U.S. than in England. d. Along the Ohio River, steam was preferable to water power because of variable stream levels. e. All of above.
It is possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything
a. True b. False
Every economy must answer each of the following questions except one. Which is the exception?
a. Which goods will be produced? b. Why are these particular goods produced? c. Which resources should be used? d. How should resources be combined to produce each product? e. Who will actually consume the goods produced?
Which of the following is most likely an example of specialization?
a. People work on an assembly line. b. A restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, and servers to wait on the tables. c. Only those with medical degrees qualify to become doctors. d. A family decides to grow their own crops.