1. A point on the frontier of the production possibilities curve is:
A. attainable and the economy is efficient.
2. The individual who brings together economic resources and assumes the risk in a
capitalist economy is called the:
1.The division of labor means that
workers specialize in various production tasks
2.One reason that the quantity of a good demanded increases when its price falls is that
lower price increases the real incomes of buyers, enabling them to buy more
1. Suppose a nation's 2003 nominal GDP was $972 billion and the general price index
was 90. To make the 2003 GDP comparable with the base year GDP, the 2003 GDP must
inflated to $1080 billion
2. Suppose nominal GDP was $360 billion in 1990 and $450
1. In an economy, 35 million workers are employed out of a labor force of 50 million and a total
population of 70 million. The unemployment rate is:
C) 30 percent
2. Assuming the total population is 200 million, the labor force is 100 million, and 92 mill
If the Congress passes legislation to decrease government
spending to control demand-pull inflation, then this would be an
example of a(n):
When the Federal government uses taxation and spending
actions to stimulate the e
The alternative combinations of two goods which a consumer
can purchase with a given money income is:
Which is not considered to b
1. A command economy is characterized by the private ownership of
resources and the use of markets and prices to coordinate and direct
In the circular flow model,
Household are buyers and businesses are sellers
Government policies designed to promote efficiency:
a. usually do so at the expense of equity.
b. tend to cause the economy to grow more slowly.
c. always fail.
d. require very high taxes.
All of the following can be considered a student's
costs of goin