Which of the following would shift a nation's production possibilities frontier outward?
A) an increase in demand for the nation's products
B) discovering a cheaper way to convert sunshine into electricity
C) a decrease in the unemployment rate
D) a law requiring workers to retire at age 50
B
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It is difficult to explain how firms behave in an oligopoly because
a. they produce differentiated products b. there are many suppliers and few buyers c. they do not attempt to maximize profits d. each takes into account the behavior of other firms when making pricing decisions e. there are no barriers to entry or exit
Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?
What will be an ideal response?
If an economy is operating efficiently and with full employment, the production of more of one commodity will necessarily lead to less of something else being produced because of:
A) the unlimited wants of people. B) perfectly adaptability of resources in the production of various goods. C) scarcity. D) the lack of money capital.
Assume we have a stock currently worth $100. We also assume the interest rate is zero, and we can buy options for this stock with a strike price of $100. If the stock can rise or fall by $20 with equal probability over the option period, and the option cannot be exercised until the expiration date, what is the time value of the option?
A. $20 B. $10 C. $0 D. $100