Improvements in technology will shift the production possibilities curve outward.
a. true
b. false
Ans: a. true
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Explain how not knowing whether someone will vote naively or strategically could make vote manipulation through agenda setting more difficult
What will be an ideal response?
A bank has deposits of $100,000, reserves of $20,000, and loans of $80,000. If the desired reserve ratio is 10 percent, then its excess reserves are
A) 0. B) $8,000. C) $10,000. D) $2,000. E) $12,000.
It is often said that if we could get more individuals to study the issues and vote we could have significant change through the ballot box
While true in a technical sense, which of the following statements best explains why this outcome is ¬not likely to occur? a. Individuals have double-peaked preferences and thus cyclical majorities will be prevalent. b. Individuals are rationally ignorant and free ride off of the politically informed. c. Individuals form special interest groups to suppress those attempting to effect change. d. The electoral college stifles grassroots movements at all levels.
Which of the following helps explain why real GDP is inversely related to the price level within the framework of the AD-AS model?
a. As prices fall, domestic consumers have an incentive to buy more of the cheaper goods and services. b. As prices fall, the monetary authorities will have to increase the money supply, which will lead to an increase in the quantity of goods and services purchased. c. As prices fall, the government will have to reduce taxes, which will lead to an increase in the quantity of goods and services purchased. d. As prices fall, the wealth of people holding the fixed quantity of money increases, causing them to expand their purchases of goods and services.