If a country's production possibilities curve gets more bowed out over time, it is an indication that
A) technological change has taken place.
B) society is learning to use its resources more efficiently.
C) the quantity of labor and capital have increased.
D) resources have become more highly specialized.
D
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The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob is risk averse because
A) his utility function is concave. B) he has diminishing marginal utility of wealth. C) he is willing to pay a premium to avoid a risky situation. D) All of the above.
Long distance telephone service has become a competitive market. The average cost per call is $0.05 a minute, and it's declining. The likely reason for the declining price for long distance service is:
a. Governmental pressure to lower the price b. Reduced demand for long distance service c. Entry into this industry pushes prices down d. Lower price for a barrel of crude oil e. Increased cost of providing long distance service
If the demand for money depends on the interest rate, then a ________ in the money supply will increase nominal GDP by ________.
A. 5% decrease; more than 5% B. 5% increase; less than 5% C. 5% decrease; exactly 5% D. 5% increase; more than 5%
When interest rates allocate capital
A. many worthwhile projects fail to get funded and society is worse off. B. only investment projects are funded for which the expected benefits of the projects equal or exceed the opportunity cost of the projects. C. investment projects of firms tend to get funded while valuable social investments funded by the government tend not to get funded. D. there is an under investment in capital and overspending on durable consumer goods.