As a country that has a bowed-out production possibilities frontier produces more of one good, the opportunity cost of a unit of that good ________
A) might increase or decrease
B) remains the same
C) increases
D) decreases
C
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International trade based on external scale economies in both countries is likely to be carried out by
A) a relatively large number of price competing firms. B) a relatively small number of price competing firms. C) a relatively small number of imperfect competitors. D) monopolists in each country. E) a large number of oligopolists in each country.
Average weekly claims for unemployment insurance, money supply and the index of stock prices are all examples of
A) leading indicators. B) coincident indicators. C) lagging indicators. D) None of the above
Which of the following is an implicit cost?
a. salaries paid to owners who work for their own firm b. interest on money borrowed to finance equipment purchases c. cash payments for raw materials d. wages paid to hourly employees e. foregone rent on office space owned and used by the firm
_______ unemployment rises and falls with the business cycle.
a. Frictional b. Systematic c. Cyclical d. Temporary