If an economy has to sacrifice increasing amounts of good X for each additional unit of good Y produced, then its production possibilities curve is:
A) bowed out from the origin.
B) bowed in toward the origin.
C) a straight line.
D) a vertical line.
Ans: A) bowed out from the origin.
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A security with a high degree of marketability sells at a price that is
A) highly volatile. B) unpredictable. C) lower than other securities. D) higher than the equilibrium price of less marketable securities.
The two types of asymmetric information situations are those with
a. hidden costs and hidden actions b. hidden characteristics and hidden costs c. hidden actions and hidden selection d. hidden characteristics and hidden actions e. moral hazard and natural selection
Productivity is measured as output per unit of productive input
a. True b. False Indicate whether the statement is true or false
Which of the following statements regarding openness of an economy and growth is TRUE?
What will be an ideal response?