Compared to PPF1, along with PPF2 
A. the economy can produce more butter.
B. the opportunity cost of producing butter is more than before.
C. the economy can produce more guns.
D. All of these choices are correct.
Answer: D
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The nominal interest rate minus the real interest rate approximately equals the
A) rate of increase in the amount of investment. B) inflation rate. C) rate of increase in the income. D) rate the bank receives to cover lending costs.
The idea of risk aversion
A) is at odds with the idea of insurance. B) help explain the profitability of insurance companies. C) has nothing to do with insurance companies. D) help explain the losses suffers by the insurance industry. E) help explain why insurance companies in the long run are zero profit companies.
Members of the European Union (EU), rely heavily on this form of indirect taxes
a. Value-added tax b. Excise tax c. Property tax d. Sales tax
If income falls 4 percent for a year and as a result the quantity of new homes demanded falls from 23 million to 20 million units for the year, the value of the income elasticity of demand for new homes is closest to
A. 3.5. B. 2.9. C. 0.6. D. 1.8.