An advancement in technology will cause
a) the PPF to shift inwards towards the origin.
b) the PPF to shift outwards away from the origin.
c) the economy to move down along the PPF curve.
d) the economy to move upwards along the PPF curve.
Answer: b) the PPF to shift outwards away from the origin.
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In a repeated prisoner's dilemma, players:
A. always play their dominant strategy. B. never learn to play their dominant strategies. C. can sustain cooperation by playing their dominant strategy. D. can sustain cooperation by employing a tit-for-tat strategy.
The duration of an expansion is measured from:
A. peak to peak. B. peak to trough. C. trough to trough. D. trough to peak.
If a financial institution extends a 25 year loan at a 6 percent interest rate, and then the inflation rate increases suddenly and unexpectedly to 6 percent per year, the institution receives on its loan a real return of
A) minus 12 percent. B) zero percent. C) 6 percent. D) 12 percent. E) 36 percent.
Marginal analysis involves: a. comparing the total benefits of all actions to the total costs incurred as a result of those actions. b. abstract thinking, which is never actually utilized by consumers when making purchasing decisions. c. holding all other variables constant when isolating the relationship between two variables
d. comparing the additional benefit from an action to the additional cost.