A small Caribbean island-country produces only pineapples and rum. If resources are used efficiently in the economy,
A. it will not be possible to produce more rum without decreasing the production of pineapples.
B. it will be possible to produce more pineapples without decreasing the production of rum.
C. it will be producing on its production possibilities curve.
D. it will not be possible to produce more rum without decreasing the production of pineapples AND it will be producing on its production possibilities curve.
D. it will not be possible to produce more rum without decreasing the production of pineapples AND it will be producing on its production possibilities curve.
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Suppose the growth rate of GDP in the United States is 4.2 percent. If 2.9 percent and 1.3 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is
A) 0 percent. B) 1.3 percent. C) 2.9 percent. D) 4.2 percent.
When the international financial system operated under the gold standard,
a. the currencies of most countries were convertible into gold b. all international transactions were financed with gold c. the price of gold was determined by the supply and demand for foreign exchange d. the quantity of money demanded was always the same e. there was very little inflation
A temporary tax cut is not likely to be effective in stimulating aggregate demand if: a. the tax cut is large
b. the MPC is relatively high. c. the economy experiences a contractionary gap. d. the short-run aggregate supply curve is relatively flat. e. people based consumption decisions on their level of permanent income.
It is difficult to create barriers to entry if the information content of a product can be separated from the physical aspects of the product
Indicate whether the statement is true or false