The quantity of RGDP supplied will decrease in both the short run and long run when the price level ...

The quantity of RGDP supplied will decrease in both the short run and long run when the price level falls.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

The term import refers to:
 a. a purchase of goods or services from another country.
  b. a business transaction between two or more domestic firms.
  c. a sale of goods or services to another nation.
  d. a tax on foreign merchandise.
  e. a trade agreement between two industrial countries.

Question 3

If additional units of output could be produced at constant opportunity cost, the production possibilities curve would be:
 a. bowed inward toward the origin.
 b. bowed outward away from the origin.
  c. positively sloped.
 d. a straight line with a negative slope.

Question 4

The SRAS curve is vertical at the natural level of real output.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 5

According to the World Bank, the high-income oil-exporting nations like Libya, Saudi Arabia, Kuwait, and the United Arab Emirates:
 a. are considered to be still-developing countries.
  b. are the major trade partners of the U.S.
  c. are considered as underdeveloped economies.
  d. have highly interdependent economies.
  e. are considered highly-developed countries.

Question 6

A production possibilities curve is negatively sloped because:
 a. unemployment increases as an economy moves down along the curve.
 b. along the curve, production of one good must be sacrificed in order to increase production of another.
  c. unemployment decreases as an economy moves down along the curve.
 d. as the price falls, more goods are purchased.

Question 7

If input prices adjusted just as quickly as output prices, the profit effect leading to an increase in RGDP supplied would disappear.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 8

Which of the following economic indicators is used by the World Bank to classify countries as industrial or emerging economies?
 a. GDP
  b. Rate of inflation
  c. Net exports
  d. Per capita income
  e. Budget deficits

Question 9

A production possibilities curve will be concave as opposed to straight line if
 a. the law of increasing opportunity costs applies.
 b. some resources cannot be easily adapted to different tasks.
 c. the opportunity cost of the production of a good increases as more of it is produced.
  d. all of the above

Question 10

Long term contracts for inputs can lead to the slow adjustment of input prices in response to changes in aggregate demand.
 a. True
  b. False
  Indicate whether the statement is true or false