Using Figure 1.6, we know the production of 90 units of soda and 4 units of pizza is 
A. possible, but only if all resources were fully employed.
B. impossible because we either do not have the resources or the technology.
C. undesirable.
D. possible, but there would be unemployed resources.
Answer: B
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In the past 10 years or so, average real wages of U.S. workers in non agricultural industries have
a. increased about 40 percent. b. increased slightly. c. remained about the same. d. declined.
According to Keynesian coordination failure theory, the primary causes of business cycles are
A) shocks to aggregate demand. B) monetary factors. C) technology shocks. D) waves of self-fulfilling optimism and pessimism.
Which economist(s) first identified an inverse relationship between inflation and unemployment?
a. Robert Lucas and Thomas Sargent. b. W. Phillips. c. Robert Barro. d. Paul Samuelson. e. Arthur Laffer.
If the par value of a bond is $200, and the bid price of the bond is $90, it implies that:
a. the bond is sold at $110. b. the bond was bought at $110. c. the bond is trading at a discount of 10 percent of its par value. d. the bond is trading at 45 percent of its par value. e. the bond is trading at a premium of 15 percent.