Generally, if a nation produces more consumer goods than capital goods
A) more of all goods may be produced in the future.
B) less of all goods may be produced in the future.
C) about the same amount of capital goods may be produced in the future as are being produced today.
D) society will have to forego future consumption of capital goods.
Answer: B
You might also like to view...
In the diagrams below, the subscript "1" refers to the initial position of the curve, while the subscript "2" refers to the final position after the curve shifts.
In which of the diagrams above would we see a shortage at the initial price after the indicated curve has shifted?
A. (1) and (4) B. (2) and (3) C. (1) and (3) D. (2) and (4)
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns
to complete equilibrium. a. Real GDP rises and nominal value of the domestic currency remains the same. b. Real GDP falls and nominal value of the domestic currency remains the same. c. Real GDP and nominal value of the domestic currency remain the same. d. Real GDP rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
The marginal rate of technical substitution is
A. the slope of the isocost curve. B. the rate at which the firm can substitute labor for capital while holding total cost constant. C. the rate at which the firm can substitute labor for capital while holding output constant. D. both a and c E. none of the above
In the 1870s,
a. cotton prices were declining. b. the Deep South became a food importing region. c. an increasing percentage of small farms specialized in cotton. d. black farmers devoted more of their land to cotton than white farmers. e. All of the above.