If an economy experiences constant opportunity costs with respect to two goods, then the production possibilities curve between the two goods will be?
A. Bowed inward or convex from below.
B. Bowed outward until the two goods are equal, and then bowed inward.
C. Bowed outward or concave from below.
D. A straight, downward-sloping line.
Answer: D
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According to the textbook application, hybrid vehicles
a. were introduced to the mass market by Honda and Toyota b. use an electric motor for start-up and low speeds and a small conventional motor for normal speeds c. generate reduced emissions and provide high fuel efficiency d. all of the above e. none of the above
Use the following graph to answer the next question.
Which of the following factors will shift AS1 to AS2?
A. A decrease in business subsidies B. An increase in real interest rates C. A decrease in business taxes D. An increase in input prices
The aggregate demand curve will shift to the left if
A) government expenditures increase. B) people are more optimistic about their future. C) the nation's exports decrease. D) a reduction in the price level pushes down borrowing costs.
The figure above shows a nation's production possibilities frontier. In the figure, point A shows
A) the minimum quantity of pizza that the society must produce. B) the maximum quantity of pizza that can be produced. C) an unattainable point. D) an attainable point with unemployed resources. E) More information is needed to determine which of the above answers is correct.