From the long-run perspective of economic growth, saving
A. Shifts the production possibilities curve inward.
B. Is a basic source of investment financing.
C. Threatens growth because of the paradox of thrift.
D. Causes the long-run aggregate supply curve to shift to the left.
Answer: B
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Because Federal Reserve Notes (paper currency) are legal tender
A) U.S. creditors must accept them in payment of debts. B) U.S. workers must accept them as payment for labor services. C) U.S. firms must accept them as payment for goods and services. D) All of he above are correct.
In the absence of trade, a country's consumption possibilities are:
A. More than its domestic production possibilities. B. Equal to its domestic production possibilities. C. Less than its domestic production possibilities. D. Unlimited, since the terms of trade are not a constraint.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the ________ advantage in the production of tablets, which means they should specialize in ________.
A. comparative; iPods B. absolute; tablets C. absolute; iPods D. comparative; tablets
In which of the following groups of people in the U.S. would the incidence of poverty be the greatest?
A. Black families with a female head B. All families of seven or more members C. Farmers and farm laborers D. Families whose head is age 65 or over