The table above presents the production possibilities frontier for a nation. Using the information in the table, moving from possibility C to B means that
A) 4 units of capital goods are given up to get 55 units of consumption goods.
B) 2 units of capital goods are given up to get 55 additional units of consumption goods.
C) 4 units of capital goods are given up to get 10 additional units of consumption goods.
D) 4 units of capital goods are given up to get 45 units of consumption goods.
E) 2 units of capital goods are given up to get 10 additional units of consumption goods.
E
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If a good is capital intensive it means that the good is produced
A) using relatively more capital than goods that are not labor intensive. B) using capital as the only input. C) using more capital per unit of output than goods that are not capital intensive. D) using capital such that the total cost of capital is greater than the total cost of labor. E) using capital such that the cost of capital is more than 50% of total cost.
Refer to Figure 14.2. Suppose workers expect inflation to rise from 1% to 3% next year. Other things equal, this would best be represented by a movement from
A) point A to point B. B) point B to point A. C) point B to point C. D) point A to point C.
An excise tax on cigarettes
a. will cause both the market price and quantity to increase b. will cause both the market price and quantity to fall c. will cause the market price to rise and the market quantity to fall d. will cause the market price to fall and the market quantity to rise e. None of the above.
Some economists suggest the optimal way for a nation to protect its access to a strategic mineral is with
A) an infant industry tariff. B) a high rate of effective protection to keep local mines in business. C) a quota on imports of the mineral. D) a stockpile.