If a change in real GDP causes the price level to change, there will be a movement along the aggregate supply curve
a. True
b. False
A
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Geographical conditions such as good climate, availability of natural resources, and fertile soil are examples of:
A) proximate causes of prosperity. B) implicit causes of prosperity. C) fundamental causes of prosperity. D) explicit causes of prosperity.
Suppose England has a comparative advantage over the United States in producing tea. If this is true, then:
A. England should produce more tea than it wants and sell the rest to the United States. B. England should produce a small amount of tea and buy the rest of the tea it wants from the United States. C. England should not produce tea, and should instead buy it all from the United States. D. the United States has nothing to gain from buying tea from England.
In the markets for factors of production in the circular-flow diagram,
a. households provide firms with labor, land, and capital. b. households provide firms with savings for investment. c. firms provide households with goods and services. d. firms provide households with revenue.
Using a production possibilities curve, a technological advance that increases the amount of output that can be produced of either good represented on the graph when the amount of inputs remains the same would be illustrated as a(n):
A. flattening of the curve. B. movement from one point to another point along the curve. C. outward shift of the curve. D. movement from a point on the curve to a point inside the curve.