Each point on a production possibilities curve shows ____________ .
a. efficient utilization of resources.
b. underutilization of resources.
c. the potential for future growth.
d. the relationship of shortage to scarcity.
Ans: a. efficient utilization of resources.
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The exchange of secondhand securities
a. takes place in an oligopolistic market b. does not provide funds to the firm that issued those securities c. includes the initial sale when securities are issued by a firm d. involves very few institutional investors e. lowers the liquidity of the securities
Taxes are the difference between
A. GDP and net exports. B. GDP and consumer spending. C. consumer spending and saving. D. GDP and disposable income.
Long-term contracts are LESS likely when:
A. specialized investments are important. B. hold-up is likely. C. workers are paid based on piece rates. D. the exchange environment is complex.
Suppose New Zealand uses one unit of labor to produce a kiwi and two units of labor to produce an apple. Suppose Australia uses two units of labor to produce a kiwi and one unit of labor to produce an apple. In this case, New Zealand:
A. has a comparative advantage in producing kiwis. B. does not have a comparative advantage in producing either good. C. has a comparative advantage in producing apples. D. has a comparative advantage in producing both goods.