The bowed-outward shape of a PPF
A) is due to capital accumulation.
B) reflects the unequal application of technology in production.
C) illustrates the fact that no opportunity cost is incurred for increasing the production of the good measured on the horizontal axis but it is incurred to increase production of the good measured along the vertical axis.
D) is due to the existence of increasing opportunity cost.
D
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Figure 36-4
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Which of the situations illustrated in Figure 36-4 shows a currency depreciation leading to inflation?
A. 1 B. 2 C. 3 D. 4
Factors likely to cause a financial crisis in emerging market countries include
A) severe fiscal imbalances. B) decreases in foreign interest rates. C) a foreign exchange crisis. D) too strong oversight of the financial industry.
Economists assume people's tastes are
a. determined solely by advertising b. relatively stable over time c. quite variable d. irrelevant to utility analysis e. identical
Suppose you borrow $1,000 at 8% for 2 years. If the interest is compounded annually, how much money will you owe at the end of those 2 years?
A. $1,080.00 B. $1,160.00 C. $1,166.40 D. $1,345.60