A production possibilities curve (PPC) illustrates the attainable combination:
a. of two goods that can be produced given an unlimited amount of resources
b. of two goods that can be produced given a limited amount of income
c. of two goods that can be produced given a specific set of resources
d. of many goods that can be produced given an unlimited amount of resources
c. of two goods that can be produced given a specific set of resources
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The multiplier effect demonstrates how initial government purchases ______.
a. are equal to total purchases b. have no influence on total purchases c. lead to lower total purchases d. lead to higher total purchases
If an economist finds that when consumer incomes increase, consumers buy more cars, Ceteris paribus, then the economist is assuming
A. the price of cars must be decreasing. B. all other things remain constant. C. the price of gas must be decreasing. D. the interest rate on car loans must be decreasing.
Holding other factors constant, if new technology becomes available that allows machines to produce manufactured goods more quickly and with fewer defects, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. increase; decrease B. decrease; increase C. increase; not change D. increase; increase
Refer to the Article Summary. All else equal, a depreciation of the Chinese yuan relative to a currency such as the U.S. dollar should ________ the current account balance in China and therefore ________ the financial account balance in China
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase