?Money that is acceptable because the government requires that it be accepted in payment of debt is _____

Exhibit 2-11 Production possibilities curves In Exhibit 2-11, which of the following could have caused the production possibilities curve to shift from the one labeled B to the one labeled A?

A. A major natural disaster. B. An increase in resources. C. An advance in technology. D. A decrease in unemployment.

There are two existing firms in the market for computer chips. Firm A knows how to reduce the production costs for the chip and is considering whether to adopt the innovation or not. Innovation incurs a fixed setup cost of C, while increasing the revenue. However, once the new technology is adopted, another firm, B, can adopt it with a smaller setup cost of C/3. If A innovates and B does not, A earns $30 in revenue while B earns $10. If A innovates and B does likewise, both firms earn $20 in revenue. If neither firm innovates, both earn $10. Under what condition will firm A innovate?

A. C > 30 B. C < 30 C. 35 > C > 25 D. 10 > C > 0

The model predicts a permanent decrease in government purchases causes:

a. an increase consumption. b. an increases real GDP. c. an increases the real interest rate. d. all of the above.

If perfectly competitive firms are earning positive economic profits in the short run, then in the long run other firms will enter the market.

Answer the following statement true (T) or false (F)