Biology Forums - Study Force

Which of the following would be likely to shift a nation's production possibilities curve outward?
 a. a decrease in the production of capital goods
 b. an increase in the production of consumer goods
  c. an increase in the number of retired workers
 d. none of the above

Question 2

Imports are not included in GDP because they do not reflect output produced within the domestic economy.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 3

If demand increases and supply decreases, then equilibrium price must decrease, but equilibrium quantity is indeterminate.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 4

Is increased capital spending the only way for an economy to expand its production possibilities curve?
 a. No, an economy can also expand by invention and innovation.
 b. No, an economy can also grow by reallocating more resources toward the production of consumption goods.
  c. Yes, more capital investment is the only way to expand production possibilities.
 d. Yes, although increased production of capital clearly increases the opportunity cost.

Question 5

If net exports are negative, then aggregate demand will be less than the sum of consumption, investment, and government purchases.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 6

The development of a low-cost synthetic fuel is expected to cause a decrease in the price of oil.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 7

Approximately two decades after a baby boom, one could expect:
 a. production to change from an interior point to a point along the production possibilities curve.
  b. a movement along the production possibilities curve from one point to another.
 c. an outward shift of the production possibilities curve along both axes.
 d. an inward shift of the production possibilities curve.

Question 8

If the overall price level increases, it will cause a decrease in the quantity of real goods and services demanded but not a change in aggregate demand curve.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 9

Empirical evidence suggests that more digital cameras are being sold today than one year ago, and the selling price has decreased. The probable reason for this could have been an increase in supply.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 10

Which of the following will shift the production possibilities curve outward?
 a. a hurricane that destroys buildings throughout Florida
 b. an increase in the capacity utilization of existing factories
  c. an increase in the unemployment rate
 d. a decrease in the market price of both goods

Question 11

If the overall price level decreases, then the aggregate demand curve will shift to the right.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 12

If more firms enter the telecommunications industry, we can expect the equilibrium price of telecom services to decrease and the equilibrium number of services to increase.
 a. True
  b. False
  Indicate whether the statement is true or false

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