In the above figure, which point represents an unattainable production combination of the two goods?
A) point C
B) point L
C) point D
D) point N
B
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Which of the following statements is true?
A) Firms usually tend to lay off workers than cut wages to reduce costs. B) Firms tend to increase wages in periods of contracting economic activity to boost morale. C) Firms tend to decrease wages in periods of contracting economic activity to boost labor productivity. D) Firms usually tend to cut wages than lay off people to cut costs.
The branch of economics that studies the decisions of individuals and firms is called
A) macroeconomics. B) microeconomics. C) microeconomics and macroeconomics. D) positive economics. E) normative economics.
When the money market is drawn with the value of money on the vertical axis, the price level decreases if
a. either money demand or money supply shifts right. b. either money demand or money supply shifts left. c. money demand shifts right or money supply shifts left. d. money demand shifts left or money supply shifts right.
The consumer price index was 177.1 in 2001 and 179.9 in 2002. Therefore, the rate of inflation in 2002 was about:
A. 2.8 percent. B. 3.4 percent. C. 1.6 percent. D. 4.1 percent.