Economic growth can be portrayed as:
A. an outward shift of the production possibilities curve.
B. an inward shift of the production possibilities curve.
C. a movement from a point on to a point inside a production possibilities curve.
D. a movement from one point to another point on a fixed production possibilities curve.
A. an outward shift of the production possibilities curve.
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The larger the mpc, the ________ the income-expenditure multiplier and the ________ the effect of a change in spending on short-run equilibrium output.
A. smaller; larger B. larger; smaller C. larger; larger D. smaller; smaller
Gross domestic product (GDP) is the ________ in a given time period
A) value of personal consumption expenditures, gross private domestic investment, and federal government expenditures B) sum of wage and salary compensation of employees and corporate profits C) value of all final and intermediate goods and services produced by the economy excluding those goods exported to foreign nations D) market value of final goods and services produced by the economy
Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, with other things remaining the same, we would expect:
A) the price of steel to fall. B) the demand curve for steel to shift to the right. C) the demand curve for plastic to shift to the left. D) nothing to happen to steel because it is only a substitute for plastic. E) the demand curve for steel to shift to the left.
When two goods are substitutes
A) the demands for both goods will be inelastic. B) cross price elasticity of demand will be 0. C) cross price elasticity of demand will be negative. D) cross price elasticity of demand will be positive.