Refer to the above figure. How do you describe what is happening as the economy moves from point A to point C?
A) The economy has acquired new resources that are well suited for producing bread.
B) Land that was once used to graze sheep is now being used to grow wheat.
C) Resources are becoming unemployed.
D) The technology for growing wheat has improved.
C
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The ways to address agency costs include all EXCEPT
a. running background checks on prospective employees b. requiring employees to punch time clocks c. instituting longer work days d. replacing closed offices with cubical office spaces
Specialization and trade can make everyone better off if a person can obtain goods at prices that are less than that person's opportunity cost
a. True b. False Indicate whether the statement is true or false
A medium of exchange is
A) anything that is generally accepted in exchange for goods and services. B) a common measurement in which relative values are expressed. C) an item's ability to hold value over time. D) the exchange of goods and services for other goods and services. E) both a and d
As the interest rate increases
A. Consumption, investment, and net exports increase, and aggregate demand increases B. Consumption increases but investment and net exports decrease; aggregate demand remains unchanged C. Consumption, investment, and net exports decrease; aggregate demand decreases