Economic growth would best be represented by a
A. Shift inward of the production possibilities curve.
B. Movement from inside the production possibilities curve to a point on the production possibilities curve.
C. Movement from the production possibilities curve to a point inside the production possibilities curve.
D. Shift outward of the production possibilities curve.
Answer: D
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Are bank lines of credit to small firms collateralized?
A) All of them are. B) Some of them are, especially if the firm is risky. C) Some of them are, especially if the firm is safe. D) None of them are.
In the Keynesian theory of money demand,
a. the velocity of money is constant. b. the marginal propensity to hold money is constant. c. money is held in part because it is an asset. d. interest rates are fixed. e. none of the above.
Programs that automatically increase government spending (relative to revenue) during a recession and automatically decrease government spending (relative to revenue) during an economic boom are called:
a. discretionary fiscal policy. b. supply-side programs. c. automatic stabilizers. d. tax credits.
Which of the following is an example of an undesirable side effect of the operation of the market mechanism?
a. negative externalities b. comparative advantages c. abstractions d. productivity growth