Which set of items in the list would shift an economy's production possibilities curve outward?
Use the list below to answer the following question:
1. Improvements in technology.
2. Increases in the supply (stock) of capital goods.
3. Purchases of expanding output.
4. Obtaining the optimal combination of goods, each at least-cost production.
5. Increases in the quantity and quality of natural resources.
6. Increases in the quantity and quality of human resources.
A. 2, 5, and 6 only.
B. 2, 4, 5, and 6 only.
C. 1, 2, 5, and 6 only.
D. 1, 3, and 4 only.
C. 1, 2, 5, and 6 only.
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An investor is trying to decide whether to put his funds into stocks or bonds. He expects rising interest rates over the next year and higher inflation. Your advice?
What will be an ideal response?
Knowledge is an example of a positive externality
a. True b. False Indicate whether the statement is true or false
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
In effect, tariffs on imports are
A. subsidies for foreign producers. B. subsidies for domestic producers. C. subsidies for domestic consumers. D. special taxes on domestic producers.