The production possibilities curve for the nation of Economagic shifts to the left. This could have been caused by:
A. an increase in Economagic's labor supply.
B. innovation in the production of goods in Economagic.
C. a war that destroyed some of Economagic's resource base.
D. unemployment among Economagic's workers.
Answer: C
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Which of the following statements correctly uses the concept of opportunity cost in decision making?
I. "Because my secretary's time has already been paid for, my cost of taking on an additional project is lower than it otherwise would be." II. "Since NASA is running under budget this year, the cost of another space shuttle launch is lower than it otherwise would be." A) I is true, and II is false. B) I is false, and II is true. C) I and II are both true. D) I and II are both false.
Which statement is true?
A. Actual reserves - required reserves = excess reserves. B. Required reserves - actual reserves = excess reserves. C. Required reserves + actual reserves = excess reserves. D. None of the statements are true.
For a monopoly producing any output level greater than one, the marginal revenue curve:
A. lies below the demand curve. B. is minimized when total revenue is maximized. C. lies above the average revenue curve. D. is the same as the demand curve.
A strategic trade policy of questionable success was
A. Japan's elimination of tariffs on rice imports. B. Iraq withholding oil from the world market. C. Britain and France subsidizing AIRBUS. D. U.S. consideration of legalizing marijuana.