The more complicated the process used to produce a good,
a. the greater are the transaction costs of organizing production through markets
b. the lower are the transaction costs of organizing production through markets
c. the less likely a firm will use administrative controls to organize the production process
d. the more likely a firm will use the market to organize the production process
e. the more likely consumers will choose to purchase the good over other alternatives in the market
A
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Decreases in government spending
a. shift the aggregate supply to the right. b. have no effect on aggregate demand. c. shift the aggregate demand curve to the right. d. shift the aggregate demand curve to the left.
Exhibit 2-15 Production possibilities curve
In Exhibit 2-15, the shape of the production possibilities curve demonstrates:
A. changing prices. B. economic growth. C. decreases in resources. D. the law of increasing opportunity costs.
According to the quantity theory of money, if the money supply is growing at a rate of 5 percent, real GDP is growing at a rate of 2 percent, and velocity is constant, what will the inflation rate be?
What will be an ideal response?
Izzy Amador is a highly talented tattoo artist. She has chosen to specialize in tattoo art because of all of the following except
A) her tattoos are highly esteemed by tattoo lovers who are willing to pay very high prices. B) for her, this is the most lucrative way to purchase the products that she wants to consume. C) her opportunity cost of pursuing another career is very low. D) she obviously has a comparative advantage in tattoo art.