Given a production possibilities curve for defense goods and non-defense goods, which of the following is not true?
a. A production point outside the curve may be attained if new resources are discovered.
b. A production point outside the curve may be attained by acquiring a new technology.
c. A production point outside the curve may be attained by shifting resources to defense goods.
d. A production point outside the curve may be attained by acquiring both a new technology and greater resources.
e. A production point outside the curve cannot be attained with the current level of resources and technology.
c
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Which of the following will NOT occur in the short run when the money supply decreases?
A) The interest rate will increase. B) The price level decreases. C) People will buy fewer goods and services. D) Aggregate supply decreases.
Under a progressive tax system, the tax rate increases as income increases
a. True b. False Indicate whether the statement is true or false
Which of the following industries has a marginal cost that is close to zero?
a. automobile b. aircraft c. software d. furniture
Whenever a nation has substantial external debts and assets denominated in foreign currency:
A) it is easier to manage, since changes in value are often offsetting. B) there can be large and destabilizing wealth effects. C) its interest payments on the debt will be matched by interest earnings on the assets. D) the risk of default becomes very large.