Two countries, Alpha and Beta, have identical production possibilities frontiers illustrated above. If Alpha produces at point a and Beta produces at point b, then ________
A) Beta's economic growth rate will exceed Alpha's
B) Alpha consumes less than Beta today, but it will grow faster than Beta
C) Alpha's and Beta's economic growth rates will be the same
D) Beta's future consumption will be greater than Alpha's
B
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The unemployment rate equals the number of
A) unemployed workers multiplied by 100. B) unemployed workers divided by the population then multiplied by 100. C) unemployed workers divided by the number of employed workers then multiplied by 100. D) unemployed workers divided by the labor force then multiplied by 100.
Assume that Oscar is maximizing his total utility and that the equal marginal principle holds by the time he is done allocating his budget.If MUa/Pa = 100/$35, MUb/Pb = 300/?, and MUc/Pc = 400/?, the prices of products B and C
A. cannot be determined from the information given. B. must be $105 and $175, respectively. C. must be $100 and $200, respectively. D. must be $105 and $140, respectively.
Suppose the price level decreases and real GDP remains the same. Then
A) nominal GDP must decrease. B) nominal GDP must remain unchanged. C) nominal GDP must increase. D) none of the above are true.
An increase in the money supply in the simple Keynesian model causes
A) income to fall. B) inventories to rise. C) interest rates to fall. D) investment to fall.