If total spending exceeds total output, then
a. inventory levels will rise.
b. inventory levels will remain constant.
c. inventory levels will fall.
d. output will eventually decrease.
c
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The concavity or bowed-out shape of the production possibilities frontier is the result of
A. the law of downward-sloping demand. B. the law of upward-sloping demand. C. the principle of increasing cost. D. complementarity in consumption.
Which of the following is a feature of experiments?
A) Experiments are restricted to laboratories. B) Experiments are carried out only in the study of economics. C) Experiments help determine cause and effect between variables. D) Experiments require the division of participants into a treatment group and a test group.
Which of the following is true of the Federal Reserve System? a. It is one central bank located in Washington, DC
b. It was created just before World War II. c. All Federal Reserve banks are required to also become state banks. d. With the formation of the Fed, the power to issue bank notes was taken away from national banks and turned over to the state banks. e. It was notably unsuccessful in averting the Great Depression.
A country's production possibilities will grow if it
a. produces more guns than butter. b. lowers its opportunity costs. c. makes more trade-offs. d. increases its resources.