When there is a decrease in the unemployment rate,
A. The production possibilities curve shifts outward.
B. The economy moves closer to the production possibilities curve.
C. There is a movement along the production possibilities curve.
D. The production possibilities curve shifts inward.
Answer: B
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If the HHI for the widget industry is 1,200, then the market structure is
A) a monopoly. B) monopolistic competition. C) an oligopoly. D) perfect competition. E) impossible to determine
The supply of the U.S. dollar on the foreign exchange market is generated by:
a. demand for U.S. exports. b. the U.S. demand for the products and financial assets of other countries. c. the U.S. demand for domestic goods and services. d. foreign demand for U.S. products. e. foreign demand for U.S. financial assets.
If there is a permanent increase in demand for the product of a perfectly competitive industry, the process of transition to a new long-run equilibrium will include:
a. the entry of new firms. b. Neither the entry of new firms nor temporarily higher profits is correct. c. temporarily higher profits. d. Both the entry of new firms and temporarily higher profits are correct.
The question "Should more capital goods be produced instead of consumer goods?" is an example of which fundamental economic question?
A. The What to Produce question. B. The Why to Produce question. C. The How to Produce question. D. The For Whom to Produce question.