Consider two points on the PPF: point A, at which there are 50 apples and 40 pears, and point B, at which there are 46 apples and 41 pears. If the economy is currently at point A, the opportunity cost of moving to point B is
What will be an ideal response?
4 Apples
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You grow poplar trees. The lumber yard purchases cut trees from you. The trees grow 1 foot per year. Assuming a constant real price per foot for poplar and a real interest rate of 3%, would you sell a 20-foot tree today?
What will be an ideal response?
Which school calls for more information from policymakers so that people can incorporate government plans into their outlook for the future?
a. The new classical school b. The new Keynesian school c. The traditional Keynesian school d. The monetarist school e. The classical school
When the marginal product curve lies below the average product curve,
A. the total product curve must be falling. B. the average product curve must be rising. C. the marginal product curve must be rising. D. the average product curve must be falling.
International trade and money flows can increase aggregate supply and aggregate demand if
A. Tariffs are increased. B. Trade barriers are reduced. C. Quotas are increased. D. Trade barriers are increased.