Rational production decisions require an understanding of
A. trade-offs.
B. opportunity costs.
C. scarcity of resources.
D. All of the responses are correct.
Answer: D
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Both the long-run and the short-run Phillips curves shift if
A) the expected inflation rate changes. B) the expected unemployment rate changes. C) the natural unemployment rate changes. D) expected real GDP changes. E) the actual inflation rate changes.
Which of the following policies is designed specifically to directly promote technological change in an economy?
A) laws to strengthen property rights B) government subsidization of research and development C) tax incentives to promote investment in 401K plans D) a vaccination program to combat infectious diseases
In which of the following countries are substantial co-payments typically required as a part of the health care system?
A) Canada and the United States B) the United States and the United Kingdom C) the United States and Japan D) Japan and Canada.
Which of the following are positive economic statements and which are normative economic statements?
a. An increase in the minimum wage causes unemployment. b. The government should raise the minimum wage above $7.25 per hour. c. The prolonged recession has caused the unemployment rate to reach a 30-year high. d. Interest rates need to be lower for the economy to emerge from the recession. e. Inflation has decreased since the onset of the recession. f. Once the recession has ended, interest rates should increase to assure that inflation does not go up.