Suppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables. The combination of ________ reflects ________
A) 500 books and 1000 tables; an inefficient but attainable point.
B) 500 books and 500 tables; an attainable and efficient point.
C) 1000 books and 1500 tables; a free lunch.
D) 1000 books and 1000 tables; a free lunch.
E) 1000 books and 500 tables; an efficient point.
A
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The approach to understanding the determination of real GDP and the price level that emphasizes flexible wages and prices and competitive markets is
A) the Keynesian model. B) the classical model. C) Adam Smith's Law. D) the aggregate demand model.
If a city were to ban the use of automobiles within its city limits, we would expect
A) the demand curve for automobiles to shift to the left. B) people to move to another city. C) the demand curve for bicycles to shift to the left. D) the demand curve for automobiles to remain the same.