When more resources in an economy are devoted to the production of capital goods:
a. the production possibilities curve shifts inward
b. the production possibilities curve in the current period shifts inward, but shifts outward in the future.
c. the production possibilities curve shifts outward next in the future.
d. the production possibilities curve is unchanged from period to period.
c
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Which of the following are examples of involuntary risks?
a. skydiving d. (b) and (c) only b. mountain climbing e. none of the above c. being exposed to secondhand smoke
In a small open economy, an increase in government spending, while taxes remain the same, will be accompanied by
A) a decrease in private investment and an increase in privates saving. B) an increase in private investment and a decrease in private savings. C) a decrease in national savings and an increase in foreign borrowing. D) an increase in national savings and a decrease in foreign borrowing.
At about what number of companies does the reduction in risk from adding stocks of more companies to a portfolio do little to reduce risk?
Examine Figure 36.1, which shows the market for K-12 education in an economy. If the market is unsubsidized, the equilibrium tuition fees per student for K-12 education is
A. $4,000. B. $8,000. C. $6,000. D. $12,000.