A production possibilities curve with quantities of clothing and food on the axes shows which of the following?
I. A society cannot have an unlimited amount of each good.
II. For an efficient society, an increase in clothing production will necessitate a decrease in food production.
III. A society will always produce the maximum amount of both clothing and food.
A) I only
B) II only
C) III only
D) Both I and II
D
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The discount rate utilized in public sector budgeting performs the functions of:
a. allocating funds between the public and private sectors b. allocating funds between present consumption and investment (i.e., future consumption) c. allocating funds between debt and equity securities d. a and b only e. none of the above
What has happened to countries that did not participate in the globalization of the world economy?
a. The fraction of the population living below the poverty line in these countries has decreased. b. These countries have been mired in a low-growth path and are experiencing high poverty rates. c. The socialist policies in these countries have caused a big change in the income distribution, something that globalization could not have achieved. d. The growth rate of these countries is stronger than the First World countries. e. The domestic industries in these countries have experienced robust growth.
If AD and AS increase at exactly the same rate, the result will be
A. demand-side inflation. B. supply-side inflation. C. falling prices. D. stable prices.
Although the FDIC was created to prevent bank failures, its existence encourages banks to
A) take too much risk. B) hold too much capital. C) open too many branches. D) buy too much stock.