Which of the following is assumed when constructing a production possibilities curve?

A. the efficient use of resources
B. a fixed amount of resources
C. resources of a given quality
D. All of these are correct.


Answer: D

Economics

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The LM curve shows points of equilibrium in the money market and combinations of

A) inflation and unemployment. B) aggregate supply and aggregate demand. C) income and the interest rate. D) money supply and money demand.

Economics

In the bank lending channel, an important reason for output increases in the short run after an expansionary monetary policy is that

A) the funds directly available for households and firms to spend will increase. B) prices will increase, making increased production more profitable for firms. C) the increase in government spending from an expansionary monetary policy increases output through the multiplier effect. D) the ability of banks to make loans will increase.

Economics

What is the advantage of the government imposing an ad valorem tax over a specific tax when facing a monopoly?

What will be an ideal response?

Economics

In 1860, the Republican Party formed a coalition of anti-slavery voters that elected Abraham Lincoln to the presidency. Members of this coalition included all of the following groups except:

a. Northwestern farmers. b. Irish and German immigrants. c. Producers who were economically linked by the Northern Gateway. d. Large property owners in New Mexico and Utah.

Economics