Consider the following combinations of guns and butter that can be produced: 0 guns, 20,000 units of butter; 5,000 guns, 15,000 units of butter; 10,000 guns, 10,000 units of butter; 15,000 guns, 5,000 units of butter; 20,000 guns, 0 units of butter. The PPF between guns and butter is

A) a downward-sloping bowed-out curve.
B) a downward-sloping straight line.
C) an upward-sloping straight line.
D) It is impossible to answer this question without knowing which good would be plotted on the vertical axis.


B

Economics

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Refer to Figure 11-4. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy

If the United States decided to cut its support of university research in half, this would cause a movement from A) B to E. B) B to D. C) B to A. D) B to C.

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If aggregate demand just decreased, which of the following may have caused the decrease?

A) a decrease in the price level B) a decrease in imports C) a decrease in the interest rate D) a decrease in exports

Economics

The price of any productive resource is ____ related to ____ the final good or service:

a. inversely; demand for b. directly; demand for c. directly; supply of d. not; supply of

Economics

Which of the following groups would most likely be harmed by inflation?

a. workers b. borrowers c. debtors d. retirees

Economics