A closed economy is a national economy that
A. has not established diplomatic relations with other national economies.
B. has a stock market that is not open to traders from outside the country.
C. has extensive trading and financial relationships with other national economies.
D. doesn't interact economically with the rest of the world.
Answer: D
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Recessions in the U.S. economy show up in economic data as periods of
A) declining prices. B) rising interest rates. C) slower growth or actual decline in nominal GDP. D) slower growth or actual decline in real GDP.
If a firm uses only capital and labor as inputs, then what should the firm do at a given rate of production if the marginal physical product of labor per last dollar spent is higher than the marginal physical product of capital per last dollar spent
A) The firm should increase both the quantity of capital and the quantity of labor. B) The firm should decrease both the quantity of capital and the quantity of labor. C) The firm should increase the quantity of capital and reduce the quantity of labor. D) The firm should decrease the quantity of capital and increase the quantity of labor.
The law of increasing opportunity costs causes the production possibilities curve to:
a. be a straight line. b. slope upwards. c. have a bowed-out shape. d. shift inward.
If a pair-wise majority vote was held and the voters' preferences are shown in the table, which of the following is true?
A. The preferences of each member is transitive.
B. The collective preferences of the group are transitive.
C. The outcome of the vote will not change, regardless of voting method.
D. The most efficient outcome for the group will occur if pair-wise majority voting was used.