If an economy has a trade deficit, shifting the domestic SAS curve down will shift the globally-constrained potential output to the right.
Answer the following statement true (T) or false (F)
True
Any policy that shifts the SAS curve down will increase the amount of domestic demand that is met by domestic production, because the domestic price level will be closer to the world price level. Since globally-constrained production rises, so does potential output.
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You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is the most you would have been willing to pay for a ticket. Your boss called, and she is looking for someone to cover a shift on Saturday at the same time as the concert. You would have to work 4 hours and she would pay you $11/hr. The psychic cost to you of working is $2/hr. What is the opportunity cost of going to the concert?
A. $35 B. $36 C. $9 D. $1
Values can be classified in several ways according to the book, which one of these was not listed
a. Absolute and relative b. Intrinsic and extrinsic c. Traditional and prophetic d. Instrumental and terminal
Which of the following costs may provide barriers to entry in a market?
A) High research and development expenditures B) License fees C) Sunk costs associated with specialized facilities D) all of the above
The statement "Resources employed in producing X are better suited to making Y" is another way of saying
a. the production possibilities frontier is "bowed out." b. the production possibilities frontier is a straight line. c. the production possibilities frontier is "bowed in." d. resources are unproductive. e. resources have no opportunity cost.