If North Korea is currently producing at efficiency, and it proceeds to increase the size of its military, then, as long as nothing else changes, its
A. Production of nonmilitary goods will decrease.
B. Production possibilities curve will shift outward.
C. Production of nonmilitary goods will increase.
D. Production possibilities curve will shift inward.
Answer: A
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According to your textbook authors, economics is generally
A) an unbiased science. B) a method rather than a body of settled conclusions. C) founded on the observation of data. D) a false and misleading discipline.
When governments specify the maximum amount of a good that may be imported in a given period of time, they are establishing a
A) tariff. B) quota. C) dynamic tariff. D) tax. E) dumping limit.
Do government bureaucracies misallocate resources? If so, how and why? Can you list one possible way to limit the negative effects of special interests such as bureaucracies?
What will be an ideal response?
The construction of demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is:
A. price. B. expectations. C. preferences. D. incomes.