A country which has a higher ratio of capital to other factors of production than does the rest of the world is
A. relatively capital-scarce.
B. said to have a low capital-output ratio.
C. operating at a point inside its production-possibility curve.
D. relatively capital-abundant.
Answer: D
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What are the reasons that are usually given to justify regulation?
What will be an ideal response?
The time that elapses between the implementation of a policy and its intended result is referred to as
A) the action time lag. B) the recognition time lag. C) the effect time lag. D) the data lag.
What condition must be met in order for total spending to equal total output?
a. The sum of saving and government purchases must equal the sum of planned investment and net taxes. b. The sum of saving and net taxes must equal the sum of planned investment and government purchases. c. The sum of saving and planned investment must equal the sum of government purchases and net taxes. d. Saving must equal net taxes. e. The sum of saving and net taxes must equal planned investment minus government purchases.
Critics of Fed independence argue that
a. monetary policy and fiscal policy are necessarily inconsistent. b. political control ensures low rates of inflation. c. monetary policy run by specialists is inherently inflationary. d. unelected officials are undemocratic.