Using Figure 1.5, if an economy is currently producing on PP2, which of the following would shift the production possibilities curve toward PP1?
A. A decrease in the amount of capital available.
B. A decrease in the level of unemployment towards the normal level.
C. An increase in the quantity of labor available.
D. An advancement in technology.
Answer: A
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What was particularly significant about the failure of the Bank of New England in 1991?
A) It was the FDIC's first use of the purchase and assumption method. B) It fell under the FDIC's "too big to fail" policy. C) The FDIC had to delay bank liquidation due to lack of funds. D) The FDIC began its policy of insuring checkable deposits fully.
Which of the following expenditures is included in the consumption component of the gross domestic product (GDP)?
a. The money spent on the purchase of stocks b. The money spent on the purchase of used furnitures c. The money spent on the purchase of a used car d. The money spent on the purchase of kitchen appliances e. The money spent on the purchase of bonds issued by the government
The joining of firms that are producing or selling a similar product is known as
A) a conglomerate merger. B) a horizontal merger. C) a vertical merger. D) economies to scale.
In monopolistic competition, there is:
A. productive efficiency only. B. both allocative and productive efficiency. C. neither allocative nor productive efficiency. D. allocative efficiency only.