The production possibilities curve demonstrates the basic economic principle that:
a. market-based economies are more efficient.
b. supply will determine demand in the economy.
c. the production of more capital goods this year will cause the economy to produce less consumption goods next year.
d. to produce more of any one thing, assuming full employment, the economy must produce less of something else.
e. to produce more consumption goods this year requires the production of more capital goods this year.
d
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The figure above shows the market for bank reserves in Futureland
If the Bank of Futureland lowers the target federal funds rate by 1 percentage point, the central bank will conduct an open market ________ of government securities of ________ to ________ the supply of reserves. A) purchase; $25 billion; decrease B) sale; $25 billion; increase C) sale; $75 billion; decrease D) purchase; $75 billion; increase E) purchase; $25 billion; increase
All of the following statements provide evidence in support of the Beard-Hacker Thesis except:
a. The Civil War caused a transfer of political power from Southern agrarians to Northern industrial capitalists. b. Following secession, Congress passed legislation to increase tariffs and grant land to railroads. c. The Civil War created a demand stimulus for manufactured goods to support the war effort. d. The growth rate in commodity output between 1860 and 1870 was 2.0 percent for the economy as a whole and 2.3 percent for the manufacturing sector.