Explain what will happen to the production possibilities curve over time if society gives up some consumption goods in favor of more capital goods
What will be an ideal response?
If society chooses to give up some consumption goods in favor of more capital goods, then the production possibilities curve will shift outward over time. This happens when the capital goods can be used to produce more goods in the future.
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A bank's net worth is equal to its
A. liabilities minus its assets. B. profits plus its assets. C. assets plus its liabilities. D. assets minus its liabilities.
Gross investment equals net investment plus
A) capital. B) capital gains. C) depreciation. D) dividends paid to the owners of the company.
Which of the following examples would most likely be an unintended consequence of minimum wage?
a. Omar is fired from his low-skilled job but receives a large severance package. b. Linda receives on-the-job training, which could lead to a promotion. c. Josh receives a sizable bonus for the first time. d. Mary has her vacation time reduced from two weeks to one week.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30