The downward slope of the production possibilities curve illustrates the:
A. Cost-Benefit Principle.
B. Incentive Principle.
C. Scarcity Principle.
D. Principle of Comparative Advantage.
Answer: C
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The U.S. federal debt as a percentage of GDP is currently on the rise
a. True b. False Indicate whether the statement is true or false
More rigid government regulations and union contracts in Western Europe contribute to greater ________ in Western Europe than in the United States.
A. real GDP per capita. B. unemployment C. wage inequality D. real wage growth
In the simple economy where y = C + I, equilibrium output is determined at the level of income where saving equals investment
Indicate whether the statement is true or false
On the island country of Sunshine where the unit of currency is fish, net exports are 50 fish, saving is 250 fish, net taxes are 100 fish, and the government budget deficit is 175 fish. What is the value of investment?
A) 375 fish B) -375 fish C) 25 fish D) -25 fish