When an economy's production capacity is expanding:

What will be an ideal response?


Gross investment exceeds depreciation

Economics

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Which of the following might lead a nation to engage in international trade?

a. Differences in natural endowments such as climate b. Differences in skills of labor force c. Differences in endowments of natural resources d. All of the above are correct.

Economics

If an activity generates a positive externality, the government can increase total economic surplus by ________ the activity, and if an activity generates a negative externality, the government can increase total economic surplus by ________ the activity.

A. subsidizing; taxing B. subsidizing; banning C. publicizing; taxing D. taxing; banning

Economics

Considering that, on average, the return on assets is the same for small and large banks, and the return on equity is higher for large banks than small banks, what can be one of the explanations for the trend toward bank mergers?

What will be an ideal response?

Economics

Governments in certain nations are considering adopting policies to raise their low birthrates because of the concern with having:

A. High rates of inflation B. High rates of unemployment C. Too many soldiers for national defense D. Too few workers to support social programs

Economics