Trading off capital goods for increasing amounts of consumer goods today will most likely result in
A) increased long-term growth.
B) decreased long-term growth.
C) decreased prices in consumer goods.
D) increases in the quantity of consumer goods.
Answer: B
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Which of the following is considered to be the best method of production?
a. Capital-intensive method b. Least-cost method c. Labor-intensive method d. Scarce resource method
The more nearly horizontal the aggregate supply curve, the
A) greater the change in Real GDP for a given change in autonomous spending. B) smaller the change in Real GDP for a given change in autonomous spending. C) larger the multiplier. D) smaller the multiplier. E) a and c
If personal income exceeds national income in a particular year, we can conclude that:
a) transfer payments exceeded the sum of Social Security contributions, corporate income taxes, and taxes on production and imports. b) the sum of Social Security contributions, corporate income taxes, and undistributed corporate profits exceeded transfer payments. c) consumption of fixed capital and taxes on production and imports exceeded personal taxes. d) transfer payments exceeded the sum of Social Security contributions, corporate income taxes, and undistributed corporate profits.
The rate at which one input can be traded for another at a point along the production possibilities frontier is called the
A. marginal rate of transformation. B. marginal rate of technical substitution. C. output price ratio. D. input price ratio.