A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents
A) a tradeoff.
B) a free lunch.
C) full employment of labor but not capital.
D) unemployment of labor but not capital.
E) an infinite opportunity cost.
B
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Using the rule of 70, about how much would $100 be worth after 50 years if the interest rate were 7 percent?
a. $400 b. $800 c. $1,600 d. $3,200
Economic conditions favor firms getting larger (producing larger quantity) when the firms are producing under conditions of:
a. Decreasing returns to scale b. Increasing returns to scale c. Constant returns to scale
A profit-maximizing firm should hire an input as long as the
A. marginal revenue product of the input is at least as much as the cost of hiring the input. B. marginal revenue product of the input is greater than the marginal revenue product of other inputs the firm is using. C. price of the input doesn't exceed the price of the other inputs used in the firm's production. D. firm can increase its total revenue.
If the Fed sells government securities, then there is
A. an increase in the supply of money. B. an increase in the required reserve ratio. C. a decrease in the discount rate. D. a decrease in the supply of money.