The production possibilities frontier in Figure 3-1, using a move from point B to point D as an example, shows
A. a constant slope.
B. the principle of comparative advantage.
C. the principle of increasing costs.
D. an inefficient allocation of resources.
Answer: C
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During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must ________ the money supply, which will put ________ pressure on nominal interest rates.
A. decrease; downward B. increase; upward C. decrease; upward D. increase; downward
Refer to the scenario above. What is the difference between the future value of John's deposit and Wendy's deposit after one year?
A) $10 B) $40 C) $60 D) $100
A shark repellent activity is designed to __________ in order to secure the position of the ___________
a. thwart competitors; shareholders b. protect managers; suitors c. lure white knights; managers d. thwart takeovers; managers e. thwart takeovers; shareholders
The total amount of consumption of a society can be increased if
a. firms allow each worker to perform multiple tasks. b. resources are allocated by a central planning group. c. individuals engage in specialization and voluntary trade. d. barter exchange is used in place of money.