Consider a society facing the production possibilities curves in the figure shown. What is the most likely cause of a society moving from PPF1 to PPF2?
A. More workers
B. Better printing press technology
C. A desire to read more books
D. Better sewing technology
B. Better printing press technology
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Suppose the price level of a product is gradually declining due to fall in demand. When will a producer of this product decide to shut down in the short run?
The slope of a line is the
A) change in the values along the x-axis divided by the change in the values along the y-axis. B) values on the x-axis divided by the values on the y-axis. C) change in the values along the y-axis divided by the change in the values along the x-axis. D) values on the y-axis divided by the values on the x-axis.
A hypothesis that assumes that people combine the effects of past policy changes on economic events and their own judgment about future effects of current and future policy changes is known as
A. active expectations. B. adaptive expectations. C. irrelevant expectations. D. rational expectations.
Answer the following statements true (T) or false (F)
1) The two most important investor preferences are a desire for high rates of return and a dislike of inflation. 2) Arbitrage equates rates of return across assets of all risk levels. 3) Average expected rates of return and levels of risk are positively related. 4) Economic investment refers to the buying or selling of any asset in expectation of a financial gain.