Using productive resources to make capital goods requires that we
A. forgo some level of current consumption.
B. get government approval of our plan to make capital goods.
C. prove that the existence of the capital goods will not cause any environmental damage.
D. get everyone to agree on the best use of those resources.
Answer: A
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Which of the following is most likely an example of specialization?
a. People work on an assembly line. b. A restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, and servers to wait on the tables. c. Only those with medical degrees qualify to become doctors. d. A family decides to grow their own crops.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The GDP Price Index rises, and nominal value of the domestic currency falls. c. The GDP Price Index rises, and nominal value of the domestic currency rises. d. The GDP Price Index falls, and nominal value of the domestic currency rises. e. The GDP Price Index rises, and nominal value of the domestic currency remains the same.
Which of the following represents an example of a major cartel in global markets?
a. The Organization of Wheat and Corn Exporting Countries (OWCEC) b. The Organization of Petroleum Exporting Countries (OPEC) c. The Brotherhood of Scrap Iron Exporting Countries (BSIEC) d. The Amalgamated Association of Alfalfa Producing Countries (AAAPC)
The phrase "leakages equal injections" means:
a. that money lost buying imports equals the money injected from people in foreign countries buying our exports. b. that government must purchase surplus grain and other agricultural commodities to inject enough income into the farm economy to make up for leakages due to floods and other natural disasters. c. that aggregate income arising from the production of goods and services equals the aggregate expenditures on that production. d. that total consumption of households equals total investment of the firms.