When an economy is at full employment, increasing its military production:
a. causes a movement along the PPF.
b. causes an outward shift in the PPF.
c. means that the economy is operating outside the PPF.
d. means that the economy is operating inside the PPF.
a. cause a movement along the PPF.
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When Wal-Mart decides to build a new retail store in a town, it will decide to build a large store rather than a small store if the large store is expected to earn a greater economic profit
What other motive would Wal-Mart have for choosing to build a large store? A) A larger store will help Wal-Mart maintain its position as the leading retail company in the world more than a smaller store would. B) Because of economies of scale, the average total cost of production is less for a larger store than a smaller store. C) A larger store will give Wal-Mart greater political influence in the community. D) A larger store may deter entry into the town by a rival firm.
Refer to the accompanying figure, which shows the annual domestic supply and annual domestic demand for jeans in a small country.
If the world price of a pair of jeans is $40, and this country is open to trade with the rest of the world, then it will ________ pairs of jeans each year.
A. export 4,000 B. export 24,000 C. import 28,000 D. import 24,000
Which of the following does not take place in the direct finance market?
A) Ownership in corporations is sold in the form of common stock. B) Deposits from savers are accumulated and loans made to borrowers. C) Ownership in corporations is sold in the form of preferred stock. D) Corporate bonds are sold to savers.
The growth of GDP may understate changes int he economy's well-being over time if the:
What will be an ideal response?