The above table shows the daily production possibilities for a bakery. Currently the bakery bakes 60 pizzas and 180 loaves of bread, that is at alternative C.Using the above table, what is the opportunity cost of moving from alternative C to alternative D?
A. 30 loaves of bread
B. 60 loaves of bread
C. 1/2 loaf of bread
D. 2 loaves of bread
Answer: B
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Fred operates his own business, Fred would be counted as employed
a. in both the household and estblishment surveys b. in the household but not the establishment survey. c. in the establishment but not the household survey. d. in neither the household nor the establishment survey.
Which of the following is generally considered a desirable outcome of fiscal policy?
A. Greater deficits. B. A higher price level. C. Higher unemployment rates. D. More jobs.
Crowding out due to government borrowing occurs when
A) lower interest rates increase private sector investments B) lower interest rates decrease private sector investment C) higher interest rates decrease private sector investment D) a smaller money supply increase private sector investment E) a smaller money supply decrease private sector investment