Refer to the accompanying figure. For the nation whose PPC is shown, it must be true that:
A. some of the nation's productive resources are better-suited to making milk, and some are better-suited to making movies.
B. the nation has a comparative advantage in making milk.
C. the nation's productive resources are better-suited to making milk than to making movies.
D. the nation's productive resources are better-suited to making movies than to making milk.
Answer: A
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According to the quantity theory of money, if there are fewer dollars available to spend on the same number of goods and services, then:
A. the price level will fall. B. the price level will rise. C. output will decrease. D. output will increase.
Taxes on sales of liquor, tobacco, and tires are examples of
A. direct taxes. B. excise taxes. C. progressive taxation. D. loopholes.
The rate of return that financial investors require to hold a risky asset minus the rate of return on a safe asset is called the:
A. risk premium. B. real interest rate. C. nominal interest rate. D. discount rate.
The lowest point on the firm's long-run supply curve is the __________ point.
Fill in the blank(s) with the appropriate word(s).