As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
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To say that the forward market lacks liquidity means that
A) forward contracts usually result in losses. B) forward contracts cannot be turned into cash. C) it may be difficult to make the transaction. D) forward contracts cannot be sold for cash.
In investment banking, a conflict usually is present between the issuers of securities, who ________, and investors, who ________
A) benefit from unbiased auditing; desire unbiased consulting B) desire unbiased research; benefit from optimistic research C) benefit from optimistic research; desire unbiased research D) desire unbiased consulting; benefit from unbiased auditing
When we are at full employment, according to the sophisticated quantity theory of money, if M rises,
A. V will decline. B. P will rise by the same percentage. C. PQ will remain the same. D. PQ will rise by the same percentage, but most or all of the increase will be in P.
All of society's applied knowledge on how to produce goods and services is
A) held by university professors. B) called technology. C) opportunity cost. D) efficiency.