(01.02 MC) A manufacturing firm is producing two goods, X and Y, with a bowed out (concave) PPC. If management decides to hire more workers in the factory and upgrade their machinery, then what changes will it bring to the firm’s PPC?

(02.01 LC) How does a circular flow model illustrate GDP?

(05.01 MC)Question refers to the excerpt below.”We have not sought to extend our territorial possessions by conquest, or our republican institutions over a reluctant people. It was the deliberate homage of each people to the great principle of our federative union. If we consider the extent of territory involved in the annexation, its prospective influence on America, the means by which it has been accomplished, springing purely from the choice of the people themselves to share the blessings of our union, the history of the world may be challenged to furnish a parallel…We may rejoice that the tranquil and pervading influence of the American principle of self-government was sufficient to defeat the purposes of British and French interference…From this example European Governments may learn how vain diplomatic arts and intrigues must ever prove upon this continent against that system of self-government which seems natural to our soil, and which will ever resist foreign interference.”Source: James Polk, from the State of the Union Address, December 2, 1845Through the Mexican-American War that followed soon after these remarks, it is evident that “the people themselves” referred only to

(04.03 MC)Question refers to the excerpt below.”Cotton is the fabric of civilization. It has built up peoples, and has riven them apart. It has brought to the world vast and permanent wealth. It has enlisted the vision of statesmen, the genius of inventors, the courage of pioneers, the forcefulness of manufacturers, the initiative of merchants and shipbuilders, and the patient toil of many millions. A whole library could be written on the economic aspects of cotton alone. It could be told in detail, how and why the domination of the field of its manufacture passed from India to Spain, to Holland, and finally to England, which now shares it chiefly with the United States. The interdependence of nations which it has brought about has been the subject of numerous books and articles. Nor is the history of the inventions which have made possible today’s great production of cotton fabrics less impressive. From the unnamed Hindu genius of pre-Alexandrian days, through Arkwright and Eli Whitney, down to Jacquard and Northrop, the tale of cotton manufacture is a series of romances and tragedies, any one of which would be a story worth telling in detail. Yet, here is a work that is by no means finished. Great inventors who will apply their genius to the improvement of cotton growing and manufacture are still to be born.”Source: The Fabric of Civilization, 1919The role of cotton as the “fabric of civilization” was evident in which of the following in the early 1800s?

(03.06 MC) What would be the short-run effects of a decrease of household consumption on an economy that was in long-run macroeconomic equilibrium?

(03.01 LC) Which of the following components will be included in determining the aggregate demand of a country?

(03.01 LC) In deriving AD, when the cost of borrowing to purchase goods and services increases, the quantity demanded for those goods and services will generally decrease. This is a description of the

(02.04 MC) If the CPI in Year 1 is 120 and in Year 2 is 130, then what impact will this have on the price level and cost of living for individuals?

(02.05 LC)Which of the following was characteristic of the British colonies but not the French or Spanish regions?

(03.06 MC) Assuming that the economy is initially in a long-run equilibrium, which one of the following scenarios would result from a sudden increase in aggregate demand in the short run?