Refer to the diagram. The direct economic impact of the destruction and loss of lives caused by the terrorist attacks of September 11, 2001, is illustrated by the:
A. shift of the production possibilities curve from CD to AB.
B. shift of the production possibilities curve from AB to CD.
C. move from x to y on production possibilities curve AB.
D. move from y to x on production possibilities curve AB.
A. shift of the production possibilities curve from CD to AB.
You might also like to view...
If you want to know the present value of $10,000 received a year from today, and the interest rate is 4 percent, what formula can you use?
A) Present value equals $10,000 times 0.04. B) Present value equals 1.04 divided by $10,000. C) Present value equals $10,000 divided by 1.04 D) Present value equals $10,000 times 1.04.
In order to increase productivity and economic growth, poor nations need
A. A large military. B. Increased consumption. C. A strong dictator. D. Increased capital investment.
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
Suppose the wage rate in a certain industry falls, and firms hire more workers. The best explanation of this is that labor:
A. demand fell. B. demand increased. C. supply fell. D. supply increased.