Points that lie below the production possibilities curve are inefficient because:
A. producing more of one good means producing less of the other.
B. more of one good could be produced without producing less of the other.
C. producers face scarcity.
D. too many goods are being produced.
Answer: B
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At a price of $11, quantity demanded is 90; and at a price of $9, quantity demanded is 110. Since total revenue ________ by the price decrease, demand must be ________.
A. is decreased; inelastic B. is unchanged; elastic C. is increased; elastic D. is unchanged; unit elastic
Macroeconomic equilibrium occurs when
A. the quantity of output demanded equals the quantity of output supplied. B. the price level is increasing. C. the price level is decreasing. D. there is very low cyclical unemployment.
One difference between stocks and bonds is that
A) stocks are financial securities, while bonds are labor market securities. B) stocks are usually issued in electronic form, while bonds are usually issued in paper form. C) stocks represent ownership in companies, while bonds represent ownership in banks. D) stocks do not involve a promise to repay a purchaser of the stock, while bonds represent a promise to repay the purchase price of the bond.
Refer to the information provided in Figure 26.3 below to answer the question(s) that follow.
Figure 26.3Refer to Figure 26.3. The increased use of hydraulic fracturing, or fracking, in North Texas has significantly reduced energy prices across the country. This fracking would cause
A. the short-run aggregate supply curve to shift from AS1 to AS2. B. the economy to move from Point B to Point A along AS1. C. the economy to move from Point C to Point B along AS1. D. the short-run aggregate supply curve to shift from AS1 to AS0.