The discovery of new natural resources will cause
A) the economy to move closer to the production possibilities curve.
B) the production possibilities curve to shift up and to the right.
C) an upward movement along the curve.
D) the curve to shift back and to the left.
Answer: B
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Which of the following describes the infant industry argument for protectionism?
A) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets. B) Domestic producers in high-wage countries must be protected from foreign producers in low-wage countries to produce a level playing field. C) An industry must be protected in its early stages of development so that firms can compete with government-subsidized foreign competition. D) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defense in emergencies.
The impact of immigration on an economy's steady state capital-labor ratio is reduced to the extent that the immigrants tend to ________ than the native population
A) save more B) have higher fertility C) have lower income D) be younger
Robert Solow is one of the developers of
a. classical economics. b. the neoclassical growth model. c. real business cycle theory. d. new classical economics.
Which of the following statements is not correct?
a. The catch-up effect is based on the assumption of diminishing returns to capital. b. Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies. c. Malthus argued that charity and government aid was an effective way to reduce poverty. d. Peace and justice are keys to growth.