Biology Forums - Study Force

Which of the following will not shift the production possibilities curve outward?
 a. an improvement in technology, which increases the efficiency of inputs
  b. the discovery of significant oil reserves in Alaska
 c. a decrease in capacity utilization of existing factories
 d. additions to the stock of physical capital

Question 2

The four major components of aggregate demand are consumption, investment, government purchases of goods and services, and net exports.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 3

A supply curve slopes downward because of the law of supply.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 4

Which of the following would not shift the production possibilities curve in an inward direction?
 a. a sharp increase in the unemployment rate
 b. a decrease in the capital stock
 c. land is contaminated due to a nuclear meltdown
 d. a devastating war destroys both property and people

Question 5

List the various reasons that contributed to the financial crisis that occurred in 2008.

Question 6

A sharp increase in gasoline prices will cause the supply curve for trucking services to shift to the right.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 7

Assume the economy moves from a situation with full employment to one in which the unemployment rate is higher. This can be portrayed as:
 a. an inward shift of the production possibilities curve.
 b. an outward shift of the production possibilities curve.
 c. a movement from a point inside the production possibilities curve to a point closer to the production possibilities curve.
  d. a movement from a point on the production possibilities curve to a point inside the production possibilities curve.

Question 8

Explain how a consumption tax could lead to a decrease in real interest rates.

Question 9

Assume that the supply curve for tomatoes is upward sloping. If the price per pound increases from 0.99 to 1.89, a greater quantity of tomatoes will be supplied to the market.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 10

A decrease in the unemployment rate from 21 percent to 17 percent can be illustrated as:
 a. an inward shift of the production possibilities curve.
 b. an outward shift of the production possibilities curve.
 c. a movement down and to the right along the production possibilities curve.
 d. a movement from a point inside the production possibilities curve to a point closer to the production possibilities curve.

Question 11

Would a relatively high P/E ratio lead us to conclude that a stock is overvalued or undervalued? Why or why not?

Question 12

According to the law of supply, if the price of calculators decrease, the supply of calculators will decrease, everything else held constant.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 13

An increase in the unemployment rate from 15 percent to 20 percent might be illustrated as:
 a. a movement up and to the left from one point along the production possibilities curve to another.
  b. a movement from a point on the production possibilities curve to an interior point.
 c. a movement from an interior point to a point on the production possibilities curve.
 d. a movement from a point inside the production possibilities curve to one closer to the origin.

Question 14

Why are real interest rates more important than nominal interest rates with regard to analyzing the supply and demand of loanable funds?

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