Use the following figure to answer the next question.
A shift from AD1 shifts to AD2 would be consistent with what economic event in U.S. history?
A. demand-pull inflation in the late 1960s
B. recession in 2007-09
C. cost-push inflation in the mid-1970s
D. full-employment in the late 1990s
Answer: A
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What is a major disadvantage in the use of import barriers to make domestic goods cheaper?
(A) The line between imported and domestic goods becomes harder and harder to draw. (B) Domestic manufacturers may lose the economic incentive to produce their cars less expensively. (C) Import manufacturers stop trying to send their goods to the country that has import barriers. (D) Domestic manufacturers create more jobs
The existence of a universal law of scarcity creates pressures on societies to
a. use their resources according to government plans. b. economize in the use of their resources. c. allocate their resources equitably. d. exploit their resources.