Over time, an increase in a nation's stock of physical capital will:
a. shift the production possibilities curve inward.
b. cause an economy to operate inside its production possibilities curve.
c. shift the production possibilities curve outward.
d. eliminate the basic economic problem of scarcity.
c
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If velocity and output are fixed at 5 and 400, respectively, and the price level is 2, then the money supply is
A) 4,000. B) 200. C) 160. D) 40.
A firm that holds a monopoly in both goods stands to gain from a tie-in sale
A) True. B) False. C) True, which is why anti-trust laws exist. D) False, there are no dual monopolies.
"Never put all your eggs in one basket." This saying refers to the concept of
a. averaging. b. market timing. c. diversification. d. leveraging.
In the long run, a decrease in government spending, other things equal, generates
A. a higher real GDP in the short run. B. both a higher real GDP and a lower price level. C. a lower real GDP in the long run. D. a lower price level.