A point lying inside (under) a production possibilities frontier indicates that
A. the economy is saving money.
B. there are no associated opportunity costs.
C. more output could be produced with existing resources.
D. technology limits production.
Answer: C
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The stickiness of wages and prices will cause
A) changes in aggregate demand to have short-run effects on real GDP. B) changes in aggregate demand to have no short-run effects on real GDP. C) changes in aggregate demand to have long-run effects on real GDP. D) changes in aggregate demand to have both short-run and long-run effects on real GDP.
Steve sells hotdogs from a vending cart downtown. The table above shows his total revenue per day at four different prices. Between which two prices is the demand for hotdogs
a) elastic? b) unit elastic? c) inelastic?
An increase in the demand for LED light bulbs due to changes in consumer tastes, accompanied by an increase in the supply of LED light bulbs as a result of government subsidies, will result in
A) an increase in the equilibrium quantity of LED light bulbs; the equilibrium price may increase or decrease. B) an increase in the equilibrium price of LED light bulbs and no change in the equilibrium quantity. C) an increase in the equilibrium quantity of LED light bulbs and no change in the equilibrium price. D) an increase in the equilibrium price of LED light bulbs; the equilibrium quantity may increase or decrease.
Nationwide banking might reduce bank failures due to
A) reduced competition. B) reduced lending to small businesses. C) diversification of loan portfolios across state lines. D) elimination of community banks.