The figure above shows a nation's production possibilities frontier for apples and oranges
a) What combination of goods is represented by point A?
b) What combination of goods is represented by point B?
c) Which point represents an unattainable combination of goods?
a) 3 million bushels of apples and 3 million bushels of oranges
b) 3 million bushels of apples and 4 million bushels of oranges
c) Point B is an unattainable point.
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
A permanent shift in the foreign exchange market supply and demand curves such that the fixed exchange rate is no longer an equilibrium rate is referred to as:
a. permanent devaluation. b. speculative disequilibrium. c. permanent revaluation. d. speculative equilibrium. e. fundamental disequilibrium.
When you receive this week's paycheck, you can either spend it or save it. The fraction of each additional dollar of disposable income that you ____ is known as your _____.
A. save; marginal propensity to invest B. spend; marginal propensity to consume C. invest; marginal propensity to multiply D. pay as taxes; marginal propensity to spend
If, in response to a decrease in the price of grapes, the quantity of grapes demanded increases, then economists would describe this as
A) an increase in demand. B) an increase in quantity demanded. C) a change in consumer income. D) an increase in consumers' taste for grapes.