How does economic growth influence the production possibilities frontier?
What will be an ideal response?
Economic growth shifts the PPF outward. Persistent outward shifts in the production possibility frontier—economic growth—are caused by the accumulation of resources, such as more capital equipment or by the development of new technology.
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The cost of producing one more unit of a good or service that is paid by the producer
A) has to be equal to the benefit that the consumer derives from that good. B) is equal to the cost borne by people other than the producer. C) is the marginal private cost. D) is the marginal external cost.
When a banking system provides people with immediate access to their deposits, but allows banks to loan out part of its reserves, it is known as the
a. excess reserve system b. excess demand deposit system c. fractional reserve system d. legal required reserve system e. multiple banking system
Lou and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The accompanying table shows the number of rooms they can each clean and the number of meals they can each cook in an hour. Rooms Cleaned Per HourMeals Cooked Per HourLou54Alex33 For Alex, the opportunity cost of cleaning one room is making ________ meal(s); for Lou the opportunity cost of cleaning one room is making ________ meal(s).
A. 1; 4/5 B. 4; 4 C. 3; 5 D. 1; 5/4
It is profitable to hire units of labor as long as the value of marginal product:
A. equals price. B. is less than wage. C. exceeds wage. D. exceeds average product.