f a small country in Africa receives a huge investment in capital as a major corporation relocates there, its production possibilities curve will most likely ______.
a. become a straight line
b. shift outward
c. shift inward
d. split into two smaller ones
b. shift outward
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A study published in 2002 compiled evidence that using protectionism to save an average job in the textile and apparel industry would cost how much money per job saved?
a. $10,000 b. $50,000 c. $100,000 d. $199,000
According to the concept of the "invisible hand," if Susie opens and operates a profitable childcare center, then:
A. government should regulate the business to ensure quality. B. the profit Susie earns indicates that she is overcharging for her services. C. she has served society's interests by providing a desired good or service. D. this demonstrates that consumer sovereignty is not present in this market.
Changes in reserve requirements directly and immediately affect
A. the money multiplier. B. the Fed's holdings of foreign exchange. C. the monetary base. D. banks' holdings of securities.
If a central bank reduces inflation 2 percentage points and this makes output fall 3 percentage points and unemployment rise 5 percentage points for one year, the sacrifice ratio is
a. 5/2. b. 3/2. c. 2/3. d. 2/5.