Which of the following statement(s) best describes trade-offs?
a. The trade-offs in many production possibilities frontiers are represented by a straight line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to diminish.
b. The trade-offs in many production possibilities frontiers are represented by a curved line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to increase.
c. The trade-offs in many production possibilities frontiers are represented by a straight line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to increase.
d. The trade-offs in many production possibilities frontiers are represented by a curved line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to diminish.
d. The trade-offs in many production possibilities frontiers are represented by a curved line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to diminish.
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In the United States, periods of deflation
A) primarily occurred during times of war. B) were virtually nonexistent until after 1980. C) only occurred before the Civil War. D) were relatively common prior to 1930.
One reason the theory of purchasing power parity may not explain price differences between countries is:
A. nominal exchange rates are flexible. B. some products do not trade. C. inflation rates differ across countries. D. real exchange rates are almost impossible to calculate.
A closed shop is one in which
A. some members belong to the union while others do not. B. a union is prohibited. C. the union is a co-manager of the day-to-day operations of the firm. D. belonging to a union is a condition of employment.
You have observed that every time you get a new tattoo the day before you take an exam you get an A. You therefore conclude that to get an A on an exam, all you have to do is get a new tattoo the day before. You have committed the
A. fallacy of inductive reasoning. B. post hoc, ergo propter hoc fallacy. C. Ockham's fallacy. D. fallacy of division.