In economics, the creation of capital is referred to as
A. investment.
B. comparative advantage.
C. allocation.
D. consumption.
Answer: A
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An economic variable that doesn't move in a consistent pattern with aggregate economic activity is called
A) procyclical. B) countercyclical. C) acyclical. D) a leading variable.
Because pollution taxes raise production costs, the ________ curve ________.
A. supply; shifts to the right B. supply; shifts to the left C. supply; does not change D. demand; shifts to the right
When consumers face rising gasoline prices, they typically
a. reduce their quantity demanded more in the long run than in the short run. b. reduce their quantity demanded more in the short run than in the long run. c. do not reduce their quantity demanded in the short run or the long run. d. increase their quantity demanded in the short run but reduce their quantity demanded in the long run.
American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Which country has a comparative advantage in producing cars? In producing grain?
a. U.S in cars; Japan in grain b. Japan in cars; U.S in grain c. U.S in cars; U.S in grain d. Neither in cars; U.S in grain