When economists refer to "investment," they are describing a situation where:
A. people are buying shares of corporate stock.
B. resources are devoted to increasing future output.
C. money is saved in a bank account.
D. financial assets are purchased in the hope of a monetary gain.
Answer: B
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) If business income is total output minus total labor cost, then business income in country A after the immigration occurs is equal to area:
A. haf
B. habg
C. hcg
D. hce0
The fact that resources tend to be specialized is one reason the production possibilities frontier is drawn
A. bowed outward. B. bowed inward. C. as a straight line (but not horizontal). D. as a horizontal straight line.
Scarcity requires that we
A) produce efficiently. B) learn to limit our wants. C) have the most rapid economic growth possible. D) have unlimited resources. E) make choices about what goods and services to produce.
Why do financial markets depend on accurate accounting and disclosure practices?
What will be an ideal response?