Suppose that country A produces mostly consumption goods and few investment goods, while country B produces mostly investment goods with few consumption goods. Other things constant, which of the following is most likely to happen in the future?
a. The per capita income of country A will grow more rapidly than country B.
b. The population of country B will grow more rapidly than country A.
c. The production possibilities curve (PPC) of country B will shift out more rapidly than the PPC of country A.
d. The production possibilities curve (PPC) of country A will shift out more rapidly than the PPC of country B.
C
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The above figure shows the costs at Barney's Bagel Bakery. After 3000 bagels are produced each day, the ATC curve starts to slope upward because the
A) MC curve slopes upward. B) MC exceeds the ATC. C) AFC curve (not shown) starts to slope upward. D) None of the above answers is correct.
Surplus refers to:
A. the difference between the price at which a buyer or seller would be willing to trade and the actual price. B. the difference between the willingness to pay and the actual price paid. C. the difference between the willingness to sell and the actual price accepted. D. All of these are true.
Keynes' great book offered the promise of ending depressions through
a. investors reacting to lower interest rates. b. consumers taking over the ownership of factories. c. government nationalizing key industries. d. government influencing aggregate demand.
There is no difference between building a theory and evaluating a theory
Indicate whether the statement is true or false