An increase in the stock of capital will cause the
A. economy to move down the production possibility frontier.
B. production possibility frontier to shift outward.
C. economy to move closer to its production possibility frontier.
D. production possibility frontier to shift inward.
Answer: B
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The original rationale for government involvement in health care was _____
a. in helping to prevent and control contagious disease b. the dissemination of health care information c. the provision of health care insurance for the needy d. the provision of health care for the elderly
In perfect competition, marginal revenue, average revenue, and ______ are all equal.
a. percentage revenue b. quantity c. total revenue d. price
A constant-cost industry
A. is one in which an increase in demand is matched by a proportional increases in long-run supply. B. has a downward sloping long-run supply curve. C. generates increasing profits whenever demand increases because the new long-run equilibrium price is above the old price even though average costs have not changed. D. has a horizontal long-run supply curve.
If the reserve requirement is 20 percent and the Fed buys $10,000 worth of Treasury bonds, what is the change in the banks' total reserves?
A) $2,000 B) $20,000 C) $8,000 D) $100,000 E) $10,000