Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. What are the opportunity costs of producing 1 orange for Alpha and Beta, respectively?
a. 0.25 apples; 0.5 apples
b. 9 apples; 4 apples
c. 0.5 apples; 0.25 apples
d. 2 apples; 4 apples
c. 0.5 apples; 0.25 apples
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The government can reduce unemployment or reduce inflation by:
a. manipulating aggregate demand. b. manipulating the availability of natural resources. c. manipulating the availability of capital goods. d. manipulating the availability of qualified workers. e. curbing the level of immigration.
If both imports and exports rose, a. AD would decrease
b. AD would increase. c. AD would decrease if exports rose more than imports. d. AD would increase if exports rose more than imports.
If the MPC is 0.6, and the government increases its spending by $300b, the overall effect on GDP will be:
A. a decrease of $750b. B. a decrease of $550b. C. an increase of $750b. D. an increase of $250b.
In the graph shown above, if the government set a price ceiling of $26.
A. there would be a permanent shortage, at least until the price ceiling was lifted.
B. there would be a temporary shortage, then the price would fall to equilibrium price.
C. price would rise to the equilibrium price.
D. price would immediately fall to the equilibrium price.