If the economy produces 12 capital goods and 40 consumer goods,
Hypothetical Production Schedule for a Two-Product Economy
A. it is producing outside its production possibilities curve.
B. this combination of output will most likely result in economic growth.
C. the ability to produce more consumer goods can only be realized by sacrificing capital goods.
D. this economy has some unemployed resources.
D. this economy has some unemployed resources.
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Having a comparative advantage means a nation can
A) benefit from trade. B) produce at a higher opportunity cost. C) produce more of the good. D) produce without incurring an opportunity cost. E) produce the good at a point beyond its PPF.
Refer to the table above. For trade to occur along the lines of comparative advantage, wages in A relative to wages in B (measured in the same currency)
A) must be at least twice but less than 3 times as great. B) must be less than three times as small. C) must be greater than $2 but less than $3. D) Need more information to answer.
American businesses get their external funds primarily from
A) bank loans. B) bonds and commercial paper issues. C) stock issues. D) loans from nonbank financial intermediaries.
The beginning of the formal budget process is signified by:
a. in the form of the Economic Report of the President b. in a report followed shortly by the Economic Report of the President. c. at the beginning of the fiscal year. d. in a report that should be voted up or down within 60 days. e. in a report that requires a two-thirds vote for ratification.