Refer to the above diagram. If there is a movement away from the full employment of resources in an economy with production possibilities curve AB, this can be shown by:
A. a movement from point 2 to point 4.
B. a shift of the curve from AB to CD.
C. point 5 in the diagram.
D. a movement from point 3 to point 1.
Answer: A
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Food is an example of a ________ good
A) nonrival and nonexcludable B) rival and excludable C) nonrival and excludable D) rival and nonexcludable
Which of the following is not correct?
a. High-skilled immigration has many economic benefits. b. Each year in the United States, about one-third of the people earning a PhD. in science or engineering are foreign born. c. Low-skilled immigration lowers the earnings of native-born workers by 10-20 percent. d. Illegal immigrants may pay less in taxes, but they also are ineligible for many government benefits.
Net exports equals
A) exports divided by imports. B) the sum of exports and imports. C) exports minus imports. D) exports during the year. E) none of the above
If, in a closed economy with no Government sector, MPC = 0.625, then the value of the multiplier is
(a) 0.475. (b) 0.375. (c) 2.67. (d) 2.97.