A point to the left of the BP curve would represent
A) a balance of payments deficit.
B) a balance of payments surplus.
C) internal disequilibrium.
D) Both A and C.
B
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Which of the following events could result in the consumption function shifting from CF0 to CF2?
A) an increase in disposable income B) an increase in expected future income C) a decrease in wealth D) a decrease in the real interest rate E) a decrease in disposable income The figure above shows two aggregate expenditure lines.
Suppose that an Intel worker rearranges existing machines and labor and increases the quantity of chips Intel can produce. Using the productivity curve graphed, this innovation would be described as
A) a movement upward along the curve. B) a movement downward along the curve. C) a shift of the curve upward. D) a shift of the curve downward. E) no change to the productivity curve.
Refer to the scenario above. Which of the following will happen in equilibrium if the game is played only once?
A) Social surplus will be maximized. B) Tom will trust Harry and Harry will defect. C) Tom will trust Harry and Harry will cooperate. D) Neither of them will make any money.
The allocation of resources is efficient under an idealized free market system.
Answer the following statement true (T) or false (F)