An increase in an economy's capital stock increases its future productive capacity
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the scenario above. The price of a basket of goods worth $1 in the U.S. is ________ in Country 1
A) 50 karls B) 5 karls C) 20 karls D) 25 karls
John and Mary work eight hours at a bakery. John can decorate either 10 ice-cream cakes or 4 wedding cakes; Mary can decorate either 8 ice-cream cakes or 2 wedding cakes. According to this scenario
A) Mary has the absolute advantage in decorating wedding cakes. B) John has the absolute advantage in decorating wedding cakes. C) Mary has the comparative advantage in decorating wedding cakes. D) John has the comparative advantage in decorating ice-cream cakes.
An increase in taxes will cause the consumption schedule to
a. shift upward. b. shift downward. c. remain fixed as the economy moves upward along the schedule. d. remain fixed as the economy moves downward along the schedule.
Economists are:
A) concerned with developing theories and interested in solving problems. B) interested in solving problems but not concerned with developing theories. C) reluctant to predict changes in variables such as prices, employment, and spending. D) always in agreement on the best way to implement policy decisions.