Which of the following is likely to shift the production possibilities curve outward?
a. A change in preferences away from one of the goods and toward the other
b. An invention that reduces the amount of natural resources necessary for producing a good.
c. The discovery of new natural resources.
d. Both b. and c. are likely to shift the production possibilities curve outward.
d
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Monetarists argue that the crowding-out-effect is rather large. True or False
Aid sent to a foreign country is an example of ________
A) transfer payment to the foreign country B) export by the home country C) import by the home country D) factor payment to the foreign country
Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln. Which of the following events would cause the price differences in these letters to get smaller?
A) The demand for Lincoln letters decreases and the demand for Booth letters increases. B) The demand for Booth letters increases. C) The demand for Lincoln letters increases and the supply of Booth letters increases. D) The supply of Lincoln letters increases.
Which of the following statements is true?
A) Convertible preferred stockholders receive quarterly interest payments. B) Common stockholders receive a fixed dividend, and they are entitled to it before preferred stockholders get anything. C) Convertible preferred stock can be converted into preferred stock at a predetermined price. D) Many buyers of common stock are more interested in capital gains than in dividends.