The alternative combinations of final goods and services that can be produced with all available resources and technology are the
A. Nominal GDP.
B. Real GDP.
C. Production possibilities.
D. Net domestic product.
Answer: C
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In the latter half of the 1990s, the Department of Housing and Urban Development imposed regulations on Fannie Mae and Freddie Mac, requiring them to
a. extend more mortgage loans to households with low and moderate incomes. b. accept only mortgages with at least a 20 percent down payment. c. tighten lending standards and increase their holdings of low-risk, conventional mortgages. d. extend more mortgage loans to households with middle and high incomes.
If a country with a large government debt uses money creation to service and repay the debt, this will lead to
a. lower interest rates. b. an appreciation of the nation's currency in the foreign exchange market. c. inflation, higher interest rates, and a financial crisis. d. rapid economic growth, as the expansionary monetary policy stimulates the economy and generates the additional tax revenue to service the larger debt.
If the inflation rate is 2 percent and the real interest rate is 7 percent, then the nominal interest rate is
a. 3.5 percent. b. 5 percent. c. 9 percent d. 7 percent.
Suppose Colin brews beer and makes cheese. If Colin can increase his production of beer without decreasing his production of cheese, then he is producing at an:
A. inefficient point. B. unattainable point. C. efficient point. D. ideal point.