As an economy grows,
A) its PPF does not shift; instead, the production point moves from inside the PPF to be closer to the PPF.
B) the opportunity cost of production will approach 0.
C) it can eliminate scarcity.
D) its PPF shifts outward.
E) the opportunity cost of production will increase.
D
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In a saving—investment diagram for a small open economy
A) the saving curve is vertical at some fixed level of output. B) the saving curve is horizontal at some fixed interest rate. C) the real interest rate is fixed at the world real interest rate. D) equilibrium requires that Sd = Id.
In the 1870s, excess capacity in the railroad industry led to:
a. rates wars. b. the formation of regional federations to pool traffic or profits. c. price-fixing. d. hidden rate-cutting through rebates. e. All of the above.
By connecting the cost minimizing input bundles, we get the _______________
Fill in the blank(s) with the appropriate word(s).
If GDP is $400 billion, depreciation is $100 billion, and net factor income from the rest of the world is -$60 billion, then net national product is
A. $240 billion. B. $300 billion. C. $360 billion. D. $440 billion.