In the specific factors model, a country's production possibility frontier is ________ because of ________
A) a straight line; diminishing marginal returns
B) a curved line; diminishing marginal returns
C) a straight line; constant marginal returns
D) a curved line; constant marginal returns
E) a curved line; a limited supply of labor
B
You might also like to view...
You read a story in the newspaper announcing the proposed merger of Dell Computer and Gateway. The merger is expected to greatly increase Gateway's profitability. If you decide to invest in Gateway stock, you can expect to earn
A) above average returns since you will share in the higher profits. B) above average returns since your stock price will definitely appreciate as higher profits are earned. C) below average returns since computer makers have low profit rates. D) a normal return since stock prices adjust to reflect expected changes in profitability almost immediately.
Consider an economy that has the following monetary data. The monetary base and the money supply are expected to grow at a constant rate of 20% per year. Inflation and expected inflation are 20% per year
Suppose that bank reserves and currency pay no interest, all currency is held by the public, and bank deposits pay no interest. What is the cost to the public of the inflation tax? A) $60 B) $140 C) $190 D) $200
From the perspective of the United States, an increase in the nominal exchange rate will cause which of the following?
A) the dollar becomes less expensive to foreigners B) foreign goods are more expensive to Americans C) foreign currency is more expensive to Americans D) American goods are more expensive to foreigners E) none of the above
Double taxation refers to
A) corporations paying taxes on profits and individuals paying taxes on wage income. B) individuals paying taxes on wage income and individuals paying taxes on dividends. C) corporations paying taxes on profits and individuals paying taxes on dividends. D) corporations paying taxes on capital gains and individuals paying taxes on wage income.