With fixed interest rates, unanticipated deflation hurts ________ because ________
A) lenders; they get paid back in less valuable dollars
B) lenders; they get paid back in more valuable dollars
C) borrowers; they repay the loan in more valuable dollars
D) borrowers; they repay the loan in less valuable dollars
C
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Is increased capital spending the only way for an economy to expand its production possibilities frontier?
A. No, an economy can also expand by invention and innovation. B. No, an economy can also grow by investment instead of capital spending. C. Yes, more capital is the only way to expand its production possibilities frontier. D. Yes, although more capital clearly has a high opportunity cost. E. Yes, because capital is the only constraining resource that limits growth.
For a short-run cost function which of the following statements is (are) not true?
a. The average fixed cost function is monotonically decreasing. b. The marginal cost function intersects the average fixed cost function where the average variable cost function is a minimum. c. The marginal cost function intersects the average variable cost function where the average variable cost function is a minimum. d. The marginal cost function intersects the average total cost function where the average total cost function is a minimum. e. b and c
Which of the following does the United States import?
a. cotton b. wheat c. oil seeds d. zinc e. barley
One possible reason that the country of Whatsis is trapped in poverty is
a. a lack of mineral wealth b. an honest and functional government c. laws and regulations to help detect fiscal fraud d. a free press e. a civil war