10) Both country 1 and country 2 are located on their respective PPF, but countr
ID: 1188077 • Letter: 1
Question
10) Both country 1 and country 2 are located on their respective PPF, but country 1 produces twice the output that country 2 produces. It follows that
a. country 1's PPF lies further to the right than country 2's PPF. He chose A
b. country 1 has a smaller population than country 2.
c. country 1 has a bigger population than country 2.
d. country 1 practices capitalism and country 2 practices socialism.
e. none of the above
14) Suppose the market basket consists of 10X, 20Y, and 30Z. Current-year prices are $1.00 for each unit of X, $0.96 for each unit of Y, and $1.13 for each unit of Z. Base-year prices are $1.00 for each unit of X, Y, and Z. What is the approximate CPI in the current year?
a. 1.05
b. 203
c. 105.17
309
16) Which of the following statements is false?
a. The sum of the unemployment rate and the employment rate equals 100 percent.
b. The sum of the number of employed persons and the number of unemployed persons equals the civilian non-institutional population.
c. The labor force participation rate equals the number of persons in the civilian labor force divided by the number of persons in the total population.
d. a and b
e. a, b and c
18) Suppose consumption decreases at each price level. As a result, aggregate demand __________, and the AD curve shifts __________.
a. increases; leftward
b. decreases; leftward
c. increases; rightward
d. decreases; rightward
19) Suppose a drop in stock prices makes people feel less wealthy. This would cause __________ the economy's AD curve.
a. movement down along
b. movement up along
c. a rightward shift of
a leftward shift of
Explanation / Answer
e) none of the above
c)
d)
b)
e) (listed as a) a leftward shift
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