Refer to the above diagram. Which of the following is the most likely cause for a shift in the production possibilities curve from AB to CD?
A. The use of the economy's resources in a more efficient way
B. An increase in the spending of business and consumers
C. An increase in government purchase of the economy's output
D. An increase in the quantity and quality of labor resources
D. An increase in the quantity and quality of labor resources
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If the MPC is 0.8 and the tax rate is 20%, the expenditure multiplier will equal
A) 1.19. B) 2.78 C) 4.0. D) 6.0.
To be useful, a resource must be renewable
Indicate whether the statement is true or false
Which example is most likely an economic assumption?
a. Ninety percent of people act out of self-interest. b. All people act out of self-interest. c. Ninety-five percent of companies decide to maximize profits. d. Ninety-five out of 100 companies decide to maximize profits.
Joaquín is trying to raise support for a referendum that would improve the environment but diminish local manufacturing jobs by 5 percent. How could he use positive framing to encourage voters to support the referendum?
a. Argue that the environment is infinitely more important than a mere 5 percent of jobs. b. Point out that even if no action is taken, local manufacturing jobs will decline eventually anyway. c. Emphasize that the bill will save both the environment and 95 percent of local manufacturing jobs. d. Introduce another referendum that would improve the environment by 5 percent but diminish local manufacturing jobs by 95 percent.