If an economy is represented by a point inside its production possibilities curve:
A. it can produce more of one product even if it does not produce less of another product.
B. it can produce more of one product only if it produces less of another product.
C. it cannot produce more of one product unless it stops producing the other product entirely.
D. it cannot possibly produce more of one product, even if it produces less of another product.
Answer: A
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In the above figure, which movement illustrates the impact of the price level and money wage rate rising at the same rate?
A) E to H B) E to K C) E to G D) E to J
You turn to the Treasury bond market page of a newspaper and look under the column headed "Bid" and see that it says, "125:8" this indicates that
A. the price that the buyer is willing to pay for this bond is $125.08. B. the price that the buyer is willing to pay for this bond is $1,252.50. C. the price that the seller is willing to sell this bond for is $125.80. D. the price that the seller is willing to sell this bond for is $125.08.
If the aggregate price level adjusts slowly over time, then an expansionary monetary policy lowers
A) only the short-term nominal interest rate. B) only the short-term real interest rate. C) both the short-term nominal and real interest rates. D) the short-term nominal, the short-term real, and the long-term real interest rates.
In the above figure, the curve that represents the second most income equality is
A) a. B) b. C) c. D) d.