The PPF shifts if
A) the unemployment rate falls.
B) people decide they want more of one good and less of another.
C) the prices of the goods and services produced rise.
D) the resources available to the nation change.
Ques. 2Based on the table above which shows Chip's costs, if Chip shuts down in the short run, his economic loss will be
A) 0.
B) 1,000.
C) 1,200.
D) 4,000.
Ques. 3Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?
A) technological advances in digital camera production
B) consumers' preferences changed in favor of digital cameras
C) the price of film cameras fell
D) workers who make digital cameras received a pay raise
Ques. 4________ economists believe that active help from fiscal and monetary policy is needed to insure that the economy is operating at full employment.
A) Keynesian
B) Monetarist
C) Classical
D) All
Ques. 5Market income is
A) profit earned in factor markets.
B) interest earned in factor markets.
C) wages, interest, rent, and profit earned in factor markets.
D) wages, interest, rent, and profit earned in factor markets plus cash payments made to households by government.
Ques. 6Suppose Sam plans to buy only popcorn and soda. He has 40 to spend per week. A change in which of the following variables will change Sam's consumption possibilities? I. price of popcorn II. income III. preferences IV. utility
A) II only
B) I and II
C) I, II and III
D) III and IV
Ques. 7In the United States -since 1981- which two of the following have almost always moved in the same direction?
A) net exports and the government sector balance
B) net exports and the private sector balance
C) the government sector balance and the private sector balance
D) none of the above
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