Using a production possibilities curve, a technological advance that increases the amount of output that can be produced of either good represented on the graph when the amount of inputs remains the same would be illustrated as a(n):
A. flattening of the curve.
B. movement from one point to another point along the curve.
C. outward shift of the curve.
D. movement from a point on the curve to a point inside the curve.
Answer: C
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Describe some of the advantages and disadvantages of each of the following schools: linear stages, structural change, dependence and neoclassical
What will be an ideal response?
According to the interest-rate-based perspective on the monetary policy transmission mechanism
A. changes in the money supply have little influence on macroeconomic variables. B. key channels of monetary policy indirectly ultimately relate money supply changes to total planned spending through indirect effects on planned investment. C. inflation is always caused by excessive monetary growth and changes in the money supply offset aggregate demand only directly. D. monetary policy leads to increases in the price level but will have no effect on the rate of output.
In the 1970s and 1980s, Walmart entered several markets outside of its home base of Arkansas. As a result, it brought lower prices on a variety of goods. The Bureau of Labor Statistics did not send its shoppers into these new stores until there was a new survey, leading to the CPI
A. understating inflation because they were missing "when people shop." B. overstating inflation because they were missing "where people shop." C. understating inflation because they were missing "where people shop." D. overstating inflation because they were missing "when people shop."
A firm’s optimal input proportions may change if
A. input prices change. B. the relative marginal productivities of the inputs change. C. the firm’s optimal output level changes. D. All of the responses are correct.