If a nation devotes a larger share of its current production to consumption goods, then
A) it must produce at a point within its PPF.
B) its economic growth will slow down.
C) some productive factors will become unemployed.
D) its PPF will shift inward.
E) its PPF will shift outward.
B
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A rise in the U.S. price level brings a ________ in the price of U.S. exports relative to imports that ________ exports of U.S. goods, bringing ________ in the quantity of U.S. real GDP demanded
A) fall; increases; an increase B) rise; decreases; a decrease C) fall; decreases; a decrease D) rise; increases; a decrease E) rise; increases; an increase
A salesperson's bonus for this year is based on meeting targets based on last year's sales. This year turns out to be an unusually good year. The salesperson is likely to:
A. defer some sales to the next fiscal year B. just be satisfied with meeting last year's target. C. meet the target easily and push forward with all potential sales. D. fail to meet the last year's targets because of overconfidence.
One country has a comparative advantage over another country in the production of a good if it
A) has a curved production possibilities curve and the other country has a linear production possibilities curve. B) has a linear production possibilities curve and the other country has a curved production possibilities curve. C) is a lower opportunity cost producer of the good. D) has lower fixed costs than the other country.
Average total cost and average variable cost are minimized at the same level of output.
Answer the following statement true (T) or false (F)