If production involves increasing opportunity cost, then moving nearer the horizontal axis will increase the opportunity cost of
a. the good that is shown on the horizontal axis.
b. the good that is shown on the vertical axis.
c. both of the goods shown on the axes.
d. neither of the goods shown on the axes.
a
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Which of the following is a possible consequence if a contractionary monetary policy is adopted?
A) The demand for labor will increase. B) The aggregate price level will rise. C) Real output will increase if nominal wages are fixed. D) Real wages will increase if nominal wages are fixed.
Refer to Figure 3-2. An increase in the price of substitutes in production would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
The World Trade Organization (WTO):
A. sets tariffs to balance international trade among nations. B. is the successor to NAFTA. C. hears and rules on trade disputes between nations. D. sets exchange rates to balance international trade among nations.
Supporters of supply-side economics claim that Reagan's tax policies were quite successful in stimulating the economy because
A. inflation rates fell sharply from the high rates of 1980 and 1981. B. throughout most of the 1980s, federal receipts continued to rise even though tax rates had been cut. C. almost immediately after the tax cuts, the economy expanded and the recession of 1980-1982 came to an end. D. all of the above.