Use the following production possibilities frontiers to answer the next question.
Curve (a) is the initial frontier for the economy, and the nation is initially producing combination P. A shift from curve (a) to curve (b) suggests that the economy can then increase its production of capital goods
A. so as to produce the combination L.
B. and consumer goods simultaneously, except at the point where the curve intersects the vertical axis.
C. but will have to hold constant its production of consumer goods.
D. only if it reduces its production of consumer goods.
Answer: B
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People trade because
A) they are able to take advantage of others. B) government regulates the market. C) the must do so. D) they make themselves better off.
A market that will naturally end up with just one seller is a(n)
a. evolutionary monopoly. b. natural monopoly. c. competitive monopoly. d. entry barrier monopoly.
Capital movements are typically the dominant factor in determining exchange rates in the short and medium run.
Answer the following statement true (T) or false (F)
How do the suppliers of capital and the users of capital connect?
A. Through the Fed discount window B. Through government agencies C. Through private one-on-one transactions D. Through the use of a financial intermediary