An economy's resources:
a. are limited in quantity.
b. are always efficiently utilized.
c. consist of land, labor, capital, and money.
d. are unrelated to its standard of living.
e. are unlimited when we use the latest technology.
a
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During a period of contractionary monetary policy
A) the price level is increased, which leads to an increase in the money supply. B) the price level is decreased, which leads to a decrease in the money supply. C) the rate of growth of the money supply is increased, leading to an increase in the price level. D) the rate of growth of the money supply is reduced, leading to a decrease in the price level.
Economics is the study of choice under conditions of
a. demand b. supply c. scarcity d. opportunity e. abundance
The production possibilities curve is bowed outward from the origin because of
a. the law of increasing costs b. the finite nature of the resource base c. inefficiency d. improper output mix e. unemployment
If there is a shortage of product X, and the price is free to change:
A. fewer resources will be allocated to the production of this good. B. the price of the product will rise. C. the price of the product will decline. D. the supply curve will shift to the left and the demand curve to the right, eliminating the shortage.