All of the following push a country inside its production possibilities curve except
A. A sudden burst of inflation that has not been anticipated.
B. The withholding of resources from the production process because of speculation.
C. A sudden burst of deflation that has not been anticipated.
D. An increase in labor force participation.
Answer: D
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The nominal wage is the wage rate adjusted for changes in the price level
Indicate whether the statement is true or false
The government can turn a shortage of a good into a surplus by
A) imposing a sufficiently low ceiling price. B) offering subsidies to producers. C) persuading producers to increase the amount of the good available. D) supporting the price of the good above the market clearing level.
All other things being equal among the banks below, which bank is the least likely to become insolvent?
A) Bank A with assets of $100 million and liabilities of $80 million. B) Bank B with assets of $100 million and liabilities of $70 million. C) Bank C with assets of $200 million and liabilities of $120 million. D) Bank D with assets of $400 million and liabilities of $310 million. E) Bank E with assets of $100 million and liabilities of $60 million.
Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Wal-Mart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like the neighborhood drug store, often go out of business because they lose customers. This story demonstrates that:
A. consumers are boycotting local retailers. B. Wal-Mart engages in illegal acts of monopolization. C. there are diseconomies of scale in retail sales. D. there are economies of scale in retail sales. E. Wal-Mart is managed by ruthless business people.