Whenever a society forgoes current consumption to invest in capital goods,
A) it will have less to consume next year.
B) it will be easier for that society to consume less in the future because people will become accustomed to less.
C) that society can consume more in the future.
D) it will be forced to produce fewer capital goods in the future.
C
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What is the added worker effect?
A. A secondary worker enters the labor force when the wage rate is high. B. A secondary worker enters the labor force when he or she no longer must allocate time to household production. C. A secondary worker enters the labor force when his or her consumption of goods exceeds his or her nonlabor income. D. A secondary worker enters the labor force when his or her household productivity increases. E. A secondary worker enters the labor force when the main worker in the household has lost his or her job or has experienced a wage cut.
The money supply will grow faster through deposit creation when the required reserve ratio is:
A. high and banks hold excess reserves. B. high and banks cannot find good customers to lend to. C. low and banks are able to lend out all of their excess reserves. D. low and banks are unable to loan out all of their excess reserves.
Refer to Table 2-18. Which of the following statements is true?
A) Mickey has a comparative advantage in making both products. B) Minnie has a comparative advantage in making both products. C) Minnie has a comparative advantage in making hats and Mickey in making umbrellas. D) Mickey has a comparative advantage in making hats and Minnie in making umbrellas.
To be effective, pure bundling requires firms to be able to separate consumers into separate markets
Indicate whether the statement is true or false