A movement along the production possibilities curve would imply that:
A. productivity has increased.
B. productivity has declined.
C. society has chosen a different set of outputs.
D. the labor force has grown.
Answer: C
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Panel A shows a change in quantity demanded and Panel B shows a change in demand.
Indicate whether the statement is true or false.
Other things equal, when Europeans want to buy more grains from the United States:
a. U.S. imports will increase. b. European exports will increase at every level of domestic income. c. U.S. exports will increase at every level of domestic income. d. the U.S. balance of payments will show a deficit. e. U.S. consumption spending will fall.
Which of the following events triggered intense debate over the classical model of the economy?
a. The U.S. Civil War b. World War I c. the Baby Boom d. The Great Depression e. World War II
Which of the following is one of the most important benefits of money in an economy?
A) Money allows for the exchange of goods and services. B) Money allows for the accumulation of wealth. C) Money makes exchange easier, leading to more specialization and higher productivity. D) Money encourages people to produce all of their own goods (self-sufficiency) and therefore increases economic stability.