The production possibilities curve represents
A) the total amount of stocks and bonds that exist in the economy.
B) the trade-off between human capital and physical capital that exists.
C) all possible combinations of total output that can be produced.
D) society's needs.
Answer: C
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Inflation might lead to ________ because ________
A) lower demand for stocks; of tax distortions B) lower demand for cash; money does not typically yield interest C) uncertain or uneven demand for goods; higher fluctuations in relative prices make it harder for consumers to compare among goods and make rational consumption decisions D) all of the above E) none of the above
In general, the more equitable the incidence of a tax system is the:
A. less complicated and more efficient is its design B. more complicated and less efficient is its design. C. more complicated and more efficient is its design. D. less complicated and less efficient is its design.
An increase in the U.S. trade deficit could be caused by
A. A depreciation of the dollar. B. The imposition of a tariff on imported goods. C. An appreciation of the dollar. D. An increase in the rate of inflation in other countries.
One major barrier to entry under pure monopoly arises from ________.
A. the availability of close substitutes for a product. B. the price taking ability of the monopoly. C. diseconomies of scale. D. the cost of the infrastructure needed to produce.