If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
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Businesses hold substantial balances in demand deposits for all of the following reasons EXCEPT:
A) they cannot hold NOW accounts B) the existence of low transaction costs C) to maintain liquidity D) relatively high interest rates
Following Alfred Nobel's will, there are five Nobel Prizes awarded each year. These are for outstanding achievements in Chemistry, Physics, Physiology or Medicine, Literature, and Peace
In 1968, the Bank of Sweden added a prize in Economic Sciences in memory of Alfred Nobel. You think of the data as describing a population, rather than a sample from which you want to infer behavior of a larger population. The accompanying table lists the joint probability distribution between recipients in economics and the other five prizes, and the citizenship of the recipients, based on the 1969-2001 period. Joint Distribution of Nobel Prize Winners in Economics and Non-Economics Disciplines, and Citizenship, 1969-2001 U.S. Citizen (Y = 0) Non= U.S. Citizen (Y = 1) Total Economics Nobel Prize (X = 0) 0.118 0.049 0.167 Physics, Chemistry, Medicine, Literature, and Peace Nobel Prize (X = 1) 0.345 0.488 0.833 Total 0.463 0.537 1.00 (a) Compute E(Y) and interpret the resulting number. (b) Calculate and interpret E(Y =1) and E(Y =0). (c) A randomly selected Nobel Prize winner reports that he is a non-U.S. citizen. What is the probability that this genius has won the Economics Nobel Prize? A Nobel Prize in the other five disciplines? (d) Show what the joint distribution would look like if the two categories were independent. What will be an ideal response?
What does "lender of last resort" mean with respect to the Federal Reserve?
(A) It will lend money to a bank in a financial emergency. (B) It has the power to decide how much money a bank can lend out. (C) It decides interest rates for interbank loans. (D) It makes decisions about who a bank can lend money to.
Gross savings are comprised of _______ savings, _______ savings, and _______ savings.
Fill in the blank(s) with the appropriate word(s).