A decrease in the stock of capital will cause the
A. economy to move down the production possibility frontier.
B. production possibility frontier to shift outward.
C. economy to move closer to its production possibility frontier.
D. production possibility frontier to shift inward.
Answer: D
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You're buying snacks for an Econ Club meeting. You've been given $100 to spend on chips and soda. If bags of chips cost $3 each and Soda costs $1 each, how much of each can you buy?
A. 40 bags of chips and 10 sodas B. 10 bags of chips and 75 sodas C. 25 bags of chips and 25 sodas D. 30 bags of chips and 15 sodas
An economy can improve its standard of living by
A) reducing the amount of human capital workers have. B) increasing the amount of capital available per hour worked. C) organizing production so that the quantity of goods produced per hour will decrease. D) all of the above
Inventory depletion is a warning sign of
A. A drop in AS. B. Deflation. C. A drop in AD. D. Inflation.
Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.
Figure 3.14Refer to Figure 3.14. If this market is unregulated and the price is currently $30, you would expect that the price of sunglasses would
A. rise to $60, where quantity demanded equals quantity supplied. B. rise to $90, so the firm could meet its excess demand. C. remain at $30, because firms would not want to increase the price. D. rise, but the new price is indeterminate from the information provided.