A short-run increase in capacity utilization
A. Shifts the production possibilities curve leftward.
B. Shifts the production possibilities curve rightward.
C. Moves the economy upward to the left along its existing production possibilities curve.
D. Moves the economy to a point closer to its existing production possibilities curve.
Answer: D
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When a firm is regulated so that its price enables it to earn a specified target percent return on its capital, the regulation is called
A) rate of return regulation. B) price cap regulation. C) earnings limited regulation. D) target pricing regulation.
If the economy is inflationary, the Fed would most likely:
a. encourage banks to provide loans by buying government securities. b. encourage banks to provide loans by raising the discount rate. c. encourage banks to provide loans by selling government securities. d. restrict bank lending by selling government securities. e. restrict bank lending by lowering the federal funds rate.
Venture capitalists
A. Are a critical link between entrepreneurial ideas and market reality. B. Provide entrepreneurial ideas. C. Share in the risks but not the rewards of entrepreneurial ideas. D. Are always willing to lend money to new businesses.
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy's opportunity cost of producing one pound of cheese is ________ car(s).
A. 1/250 B. 20 C. 250 D. 1/20