Under what conditions is an economy's production possibilities frontier also its consumption possibilities frontier?
When the economy is self-sufficient; when there is no trade
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Which one of the following is NOT a component of aggregate demand?
A) investment expenditures B) government purchases C) consumption spending D) merchandise inventories
An increase in ________ tends to increase ________ and therefore increase ________
A) cost; price; supply B) cost; demand; price C) demand; price; cost D) supply; cost; price
Dependency theory characterizes countries as being either in the center or on the periphery. Explain these two concepts. If this theory is correct, what are the implications for development strategy?
What will be an ideal response?
A liability to a bank is
a. something that the bank owns. b. something that the bank owes. c. something a customer owes the bank. d. the value of bank buildings and hardware.