Changes in leading indicators signal
A. the changes in the frictional and seasonal unemployment rate.
B. the changes in the frictional unemployment rate and the changes in the inflation rate.
C. the changes in the market basket.
D. the changes that will occur in the economy.
Answer: D
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Moving along a budget line, the prices of both goods:
a. vary and the consumer's budget is held constant. b. are held constant and the consumer's budget varies. c. and the consumer's budget are held constant. d. and the consumer's budget vary.
A nation's production possibilities curve is bowed out from the origin because:
A. resources are not generally equally efficient in producing every good. B. the originator of the idea drew it this way and modern economists follow this convention. C. resources are scarce. D. wants are virtually unlimited.