An outward shift of an economy's production possibilities curve is caused by:
a. an increase in capital. b. an increase in labor.
c. an advance in technology. d. all of these.
d
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Curly and Moe are considering living alone or being roommates and splitting the rent for the next twelve months. If they live alone, they each rent a one bedroom, one bath apartment for $500 per month, while if they are roommates, they can split a two bedroom, one bath apartment for $800 per month. The one difficulty they have is that Moe snores very loudly. Curly estimates the cost of poor sleep due to Moe's snoring at $150 per month. Moe could obtain a snore-eliminating device for $50 per month. The actual monthly gain in surplus to Curly and Moe from living together after addressing the snoring problems in the least costly way is:
A. $100. B. $50. C. $150. D. $200.
Every transaction concerning the exportation of U.S. goods constitutes a
A) demand for dollars, with no effect on markets for foreign currencies. B) supply of foreign currency, with no effect on the market for dollars. C) supply of foreign currency and demand for dollars. D) demand for foreign currency and a supply of dollars.
If the economy grows steadily over several years and at the same time maintains the aggregate demand curve in its present position, then the economy will experience which of the following?
A. a stable price level B. secular deflation C. inflation D. The price level cannot be determined without more information.
By not counting the value of intermediate goods when calculating GDP, you avoid
A. year-to-date calculations. B. deficit spending. C. black-market accounting. D. double counting.