In the figure below, we see an expansion of the production-possibility curve (from PPC1 to PPC2). The two goods produced are wheat and cloth, which are land-intensive and labor-intensive, respectively. The outward shift of the production-possibility curve is likely the result of
A. a fall in the average cost of producing cloth.
B. an increase in the national amount of usable land, the size of the labor force remaining unchanged.
C. an increase in the size of the labor force, the area under cultivation remaining unchanged.
D. an increase in the price of cloth.
Answer: B
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Refer to the payoff matrix above. Which of the following is true for Campers R Us?
A) They have two dominated strategies.
B) They have zero dominated strategies.
C) They have three dominated strategies.
D) They have one dominated strategy.
The long-run effect of increasing government budget deficits
A) is a redistribution of real GDP from privately provided goods to government provided goods. B) is no impact on equilibrium real GDP. C) is to increase of price level. D) all of the above.
Suppose that a university charges students a $100 "tax" to register for business classes. The next year the university raises the "tax" to $150 . The deadweight loss from the "tax" triples
a. True b. False Indicate whether the statement is true or false
The 2007 subprime crisis spread easily because
A) the United States is an important economy. B) banks in other countries had purchased assets that depended on the U.S. housing market. C) there was speculation against the U.S. dollar. D) the Fed failed to act at the right time.