(01.01–01.03, 05.06 HC) Assume that Atlantis and the Mushroom Kingdom use equal resources to produce consumer and capital goods, as illustrated in the table below showing maximum possible production figures. Country Capital Goods Consumer Goods Atlantis 60 units 180 units Mushroom Kingdom 20 units 100 units Draw a fully labeled production possibility curve for Atlantis. Place capital goods on the vertical axis and consumer goods on the horizontal axis. Assume constant opportunity cost. On your graph from part (a), label an inefficient point of production I, an efficient point of production E, and an unattainable point of production U. Which country has the comparative advantage in the production of capital goods? Explain. If Atlantis shifted from producing 10 units of capital goods and 150 units of consumer goods to producing 24 units of capital goods and 108 units of consumer goods, what would be the impact on its economic growth in the long run? Based on the data table, what range of capital goods could be traded for 15 units of consumer goods that would be mutually beneficial?

(03.06 MC) Assume that production in a country was affected because of a drought. Which of the following statements would be true in this scenario?

(03.08 MC) Assume that an economy is experiencing a situation in which investors are not investing because of uncertainty of their future profits. Which of the following actions should the government take to get the economy back on track?

(03.03 MC) Use the following graph to answer the question that follows.Which of the following represents the relationship between inflation and unemployment in the short run?

(03.09 MC) In an overheating economy, ________ is an example of an automatic stabilizer and ________ is an example of discretionary fiscal policy that both would help close the inflationary gap.

  (03.07 HC) Use the graph to answer the question that follows. An economy attained a long-run equilibrium at point A. How does the price adjust in the long run when the aggregate demand rises from AD1 to AD2 to bring the economy back to its natural rate?

(05.06 MC) The following table shows the values of Real GDP and population for two consecutive years of Country Z:   Real GDP (million) Population (million) Year 1 $200 50 Year 2 $300 60 Calculate the growth rate of real GDP per capita of Country Z.

(03.01 MC) Use the aggregate demand model below to answer the question that follows.Which of the following shifts would correspond to a decrease in the price level for the economy?

Which structure directly receives signals from the cochlea and transmits them to higher auditory pathways?

(05.05 MC) Which of the following changes will likely occur when the government borrows money to finance its deficit?