Because resources tend to be specialized, increased production of military goods tends to
a. decrease the opportunity cost of more military goods.
b. increase the opportunity cost of more non-military goods.
c. increase the opportunity cost of more military goods.
d. change the position of the production possibilities curve.
e. alter the slope of the production possibilities curve.
c
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In a business cycle expansion, the ________ of bonds increases and the ________ curve shifts to the ________ as business investments are expected to be more profitable
A) supply; supply; right B) supply; supply; left C) demand; demand; right D) demand; demand; left
Use the above figure. Refer to the above diagram where curves (a) through (d) are for four different countries. Income is third most unequally distributed in
A) Country A. B) Country B. C) Country C. D) Country D.
The order of Soviet dictator Joseph Stalin to farmers in the 1930s to produce capital equipment rather than food
a. was based on government support payments for agriculture. b. relied on foreign assistance. c. was an illustration of the capital formation method. d. was an illustration of the brute force method of breaking the poverty cycle, and it was a very successful policy. e. was an illustration of the brute force method of breaking the poverty cycle, and it meant starvation for millions of farmers.
Recall the illustration in the text where Y = $700 billion, consumers spend $620 billion on consumption goods, and producers make only $600 billion of consumption goods. David Tietlebaum's Poster and Frame store, a representative retail store, is directly affected by this situation. Which of the following does not happen to David?
a. David discovers that the inventories he wants to hold will be reduced. b. David will reorder greater quantities of posters and frames. c. David will sell some of the goods he had expected to hold as investment. d. David will need to restock depleted inventories. e. David will find that his actual investment is greater than intended investment.