Assume that Nation A's production possibilities is either 30 units of bricks or 50 units of wheat. Nation B's production possibilities is 20 units of bricks and 40 units of wheat. Which of the following is true?
A. Nation A is the least-cost producer of wheat
B. The high-cost producer of bricks is Nation A
C. The opportunity cost of wheat production is lower in Nation B
D. According to the principle of comparative advantage, Nation B should specialize in the production of bricks
C. The opportunity cost of wheat production is lower in Nation B
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The conventional view among economists is that persistent budget deficits lead to ________ real interest rates and ________ private investment
A) higher; crowd in B) higher; crowd out C) lower; crowd in D) lower; crowd out
According to the theory of propitious selection:
a. risk-neutral people are more likely to opt for insurance coverage. b. risk-averse people are more likely to opt for insurance coverage. c. high-risk people submit large claims for insurance coverage. d. high-risk people submit smaller claims for insurance coverage.
In the real world, the actual multiplier is ____ the simplified multiplier
a. much larger than b. slightly larger than c. equal to d. slightly smaller than e. much smaller than
When employees negotiate higher wages through collective bargaining, firms have incentive to use more capital and less labor in production.
a. true b. false