Read each question carefully and thoroughly before selecting the best answer. Choose only one answer per question. If you find something unclear, ask about it before turning in your exam. Finally, mark your answers in the appropriate columns of the computer.
Businesses produce more when the price of output increases.
An increase in government spending will lower unemployment. The lower farm prices are, the greater is the poverty rate in the United States. The level of taxes in the United States is too high. Suppose the demand for tomatoes increases. Suppose the economy was initially operating at point A on the above production possibilities curve.