Production possibilities curves for large economies are generally bow-shaped because:
A. opportunity costs tend to decrease with increases in production.
B. specialization gives some producers a comparative advantage.
C. opportunity costs tend to increase with increases in production.
D. as more resources are used to produce a good, those resources become less expensive.
Answer: C
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Sharisse brags to her mother that her starting salary as a management trainee is $36,000, much higher than her mother's starting salary of $21,000 as a management trainee several years ago
If the CPI the year Sharisse begins work is 181.2 and the CPI the year her mother started work was 109.1, Sharisse is A) wrong. Adjusting for price changes, her salary is less than her mother's salary. B) correct. Adjusting for quantity changes, her salary is more than her mother's salary. C) correct. Adjusting for price changes, her salary is more than her mother's salary. D) wrong. Adjusting for quantity changes, her salary is less than her mother's salary. E) maybe wrong and maybe right. Adjusting for quantity changes, her salary is less than her mother's salary but with the information given we are unable to further adjust for price changes.
If long-run economic growth is not accompanied by a change in aggregate demand, the result will be
A) persistent inflation. B) secular deflation. C) devaluation of the dollar. D) appreciation of the dollar.
The theory of the long-run in perfect competition helps to provide a rationale for the belief in a limited role for government in society
a. True b. False Indicate whether the statement is true or false
The simple deposit multiplier? is
A) the reciprocal of the required reserve ratio. B) always 1. C) the same as the required reserve ratio. D) different from bank to bank even if the required reserve ratio is the same for all banks.