Suppose that an economy's labor became more productive between year 1 and year 2. We could conclude that this economy's
A. real GDP remained constant.
B. production possibilities frontier shifted outward.
C. production possibilities frontier shifted inward.
D. capital stock increased by 3%.
Answer: B
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Refer to Figure 18.3. After trade and specialization begin, the maximum amount of scooters that Livonia can consume is
A) 120. B) 100. C) 80. D) 40.
Which of the following is considered a microeconomic issue?
A. The local university decides to raise tuition for online course offerings. B. The country of Zimbabwe has experienced a decline in inflation. C. The economic growth rate was reported at 2.4 percent in the first quarter of 2013 for the United States. D. The unemployment rate in Greece is 22.8 percent.
If there is a decrease in demand for picture frames, we would expect
a. both the price and quantity sold to increase. b. both the price and quantity sold to decrease. c. the price to decrease and the quantity sold to increase. d. the price to increase and the quantity sold to decrease.
"Ceteris paribus" means
A) "invisible hand." B) "other things equal." C) "making all the necessary changes." D) "at the aggregate level."