Assuming the inner curve is the United States' current production possibilities frontier, points J, N and K represent
A. an inefficient use of resources.
B. an output that is not possible to produce.
C. points of unemployed resources.
D. points of fully employed resources.
D. points of fully employed resources.
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When interest rates in the bond market go up
A) the price of existing bonds goes u
Explain the relationship between the real interest rate and investment demand. Compare that relationship to the relationship between expected profit and investment demand
What will be an ideal response?
Most markets involve the use of money for transactions because:
a. goods and services can be exchanged more easily with money than without it. b. goods and services cannot be exchanged without money. c. using money requires a double coincidence of wants. d. the transaction costs of using money are very high. e. the value of money remains same across countries over time.
As long as a firm can freely dispose of any extra inputs it may have:
A. its production function must slope downward. B. its production function must be concave. C. its production function must slope upward. D. its production function must be convex.