If opportunity costs are constant, then
A) the production possibilities curve does not exist.
B) the production possibilities curve bows outward.
C) the production possibilities curve is a straight line.
D) factors of production must not be fully employed.
C) the production possibilities curve is a straight line.
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When you make a purchase at a retail store by giving your bank an instruction to transfer funds directly from your bank account to the store's bank account, you have most likely made the purchase using
A) a loan. B) a debit card. C) credit. D) cash.
At the interest rate r, the price of a depletable natural resource three years from the present (price in present = P) will be, everything else being equal, which of the following?
A. 3P B. P3 C. P(1 + r)3 D. 3P(1 + r)3
Suppose the government increases the corporate income tax rate. This is
A) an expansionary fiscal policy that will shift the aggregate demand curve to the right by an amount equal to the initial change in corporate income tax revenue times the spending multiplier. B) a contractionary fiscal policy that will shift the aggregate demand curve to the left by an amount equal to the initial change in investment times the spending multiplier. C) a contractionary fiscal policy that will shift the aggregate demand curve to the left by an amount equal to the initial change in the corporate income tax rate times the spending multiplier. D) an automatic fiscal policy that will shift the aggregate demand curve to the left by an amount equal to the initial change in investment times the spending multiplier.
If the interest rate is zero, a promise to receive a $100 payment one year from now is:
A. more valuable than receiving $100 today. B. equal in value to receiving $101 today. C. equal in value to receiving $100 today. D. less valuable than receiving $100 today.