Which of the following statements is false?
a. Marginal analysis is an examination of the effects of additions or subtractions from a current situation.
b. The production possibilities curve shows the maximum combination of two outputs that an economy can produce, given its available resources and technology.
c. Technology is the body of knowledge and skills applied to how goods are produced.
d. Economic growth is illustrated as an inward shift of the production possibilities curve.
d
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Refer to Figure 10-2. Which of the following is consistent with the graph depicted above?
A) New government regulations decrease the profitability of new investment. B) The government runs a budget surplus. C) An expected expansion increases the profitability of new investment. D) There is a shift from an income tax to a consumption tax.
Economic growth is represented by a: a. leftward shift of a production possibilities curve
b. rightward shift of the long-run aggregate supply curve (LRAS). c. horizontal long-run aggregate supply curve (LRAS). d. downward shift of an aggregate production function.
Owners of preferred stock received fixed dividend payments while owners of common stock receive dividend payments that vary with the level of profits
a. True b. False Indicate whether the statement is true or false
To maintain a fixed exchange rate via intervention in the markets, a government should:
a. be ready to crack down on illegal traders. b. be ready to buy the home currency with foreign currency reserves when the home currency's value declines. c. be ready to sell the home currency when the home currency's value declines. d. be ready to borrow funds from international banks when the home currency's value declines.