If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
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Under the liquidity premium theory a flat yield curve implies:
A. long-term interest rates are higher than short-term interest rates. B. there is no risk premium for longer-term maturities. C. short-term interest rates are expected to remain constant. D. short-term interest rates are expected to decrease.
Recall the Application about using value added to measure the size of Walmart to answer the following question(s). According to this Application, by using a value-added approach to measure Wal-Mart's sales in 2017 and its impact on the economy, we are:
A. using a chain-weighted index. B. avoiding double-counting. C. including GDP as a measure of welfare. D. excluding the net foreign sector.
When budgets and information about costs and asset allocation is prepared for use by the managers of a business, which functional area is responsible for these items?
A. pay-off B. constant C. refund fraction D. finance
Raising the personal income tax rate rotates the consumption function ________ and ________ the tax-adjusted MPC
A) downward; raises B) upward; raises C) downward; lowers D) upward; lowers