An improvement in technology
a. will always result in a parallel shift of the production possibilities frontier
b. will never result in a parallel shift of the production possibilities frontier
c. will be indicated as a movement along the production possibilities frontier
d. will shift the production possibilities frontier outward but not necessarily to a parallel position
e. may not shift the production possibilities frontier
D
You might also like to view...
Deflation:
a. was prevalent during the oil shocks of the 1970s. b. will cause consumers' purchasing power to shrink. c. has been persistent in the U.S. economy since the Great Depression. d. none of these.
The price of bonds is tied to the interest rate; when one goes up, the other must fall
a. True b. False Indicate whether the statement is true or false
The purchasing power parity (PPP) method
a. calculates the cost of purchasing a specific bundle of goods and services in each country and uses this measure to convert the incomes of different countries to a common currency. b. calculates how much the general price level has increased within one specific country through time. c. calculates how much the average standard of living across all countries has changed through time. d. is used when one wants to compare dollar values from today with those from more than 100 years ago.
Which of the following decreases in response to the interest-rate effect from an increase in the price level?
a. both investment and consumption b. consumption but not investment c. investment but not consumption d. neither investment nor consumption