What would happen to a production possibilities frontier (with capital goods measured on the vertical axis and consumption goods on the horizontal axis) if there is an increase in the labor force?
a. The entire frontier would shift outward.
b. The upper part of the frontier would shift outward while the lower part would shift inward.
c. Nothing, there would be no movement of the frontier.
d. The entire frontier would shift inward.
e. The lower part of the curve would shift outward while the upper part would shift inward.
A
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Suppose that the market demand curve is 
and the market supply curve is 
.
a. Calculate the equilibrium price and output level.
b. Suppose a price ceiling of 6 is imposed. What is the new equilibrium quantity transacted in the market?
c. How does the price consumers pay (including any marginal effort costs) compare to the price firms receive? d. What is the total cost of the additional effort exerted by consumers? What will be an ideal response?
The monetary base does NOT include
A) currency. B) reserves of depository institutions. C) checking accounts at commercial banks. D) commercial banks' reserves.
Give two conditions that are important to the efficient market theory. List one implication of the efficient market theory
Taxes and government spending that affect fiscal policy without specific action from policymakers are called:
A. automatic stabilizers. B. expansionary fiscal policy. C. contractionary fiscal policy. D. discretionary fiscal policy.