Using Figure 1.5 above, you can tell that 
A. there is constant opportunity cost.
B. there is increasing opportunity cost.
C. there is unemployment.
D. the technology does not exist to produce 6 units of soda and 1 unit of pizza.
Answer: A
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Banks in the United States may create new money equal to their amount of required reserves
a. True b. False Indicate whether the statement is true or false
??Exhibit 16A-2 Macro AD/AS Models
?
?As shown in Panel (b) of Exhibit 16A-2, assume the economy adopts a classical nonintervention policy. Which of the following would cause the economy to self-correct?
A. ?Competition among firms for workers increases the nominal wage and SRAS shifts rightward. B. ?Long-run equilibrium will be established at Y1 and P2. C. ?Long-run equilibrium will be established at Yp and P3. D. ?Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.
A foreign resident increasing her holdings of a U.S. financial asset will be recorded as a debit item in the financial account of the U.S. balance of payments.
Answer the following statement true (T) or false (F)
Risk taking
A. is economically wasteful. B. is a cause of income inequality. C. is not a cause of income inequality. D. evens out income inequality because of the bell curve.