The statement “Resources employed in producing X are better suited to making Y” is another way of saying
A. the production possibilities frontier is “bowed out.”
B. the production possibilities frontier is a straight line.
C. the production possibilities frontier is “bowed in.”
D. resources are unproductive.
E. resources have no opportunity cost.
Answer: A
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Investment is defined as the purchase of
A) financial assets and inventories only. B) new capital goods but not additions to inventories. C) any financial asset only. D) new capital goods and additions to inventories. E) additions to inventories only.
The most important developments that reduced banks' income advantages include
A) the increase in off-balance sheet activities. B) the growth of securitization. C) the elimination of Regulation Q ceilings. D) the competition from money market mutual funds.
Normative statements are
a. prescriptive, whereas positive statements are descriptive. b. descriptive, whereas positive statements are prescriptive. c. backward-looking, whereas positive statements are forward-looking. d. forward-looking, whereas positive statements are backward-looking.
Which of the following has made it possible for investors without any special business skills to benefit from the ownership of corporate America?
A) all of the above B) the availability of mutual funds, which make it possible for even small investors to purchase a diverse stock portfolio at a low cost C) the virtual disappearance of business failures among corporations with publicly traded stock shares D) an increased tendency of small investors to buy and sell stock frequently