Is increased capital spending the only way for an economy to expand its production possibilities curve?
a. No, an economy can also expand by invention and innovation
b. No, an economy can also grow by reallocating more resources toward the production of consumption goods.
c. Yes, more capital investment is the only way to expand production possibilities.
d. Yes, although increased production of capital clearly increases the opportunity cost.
a
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Which of the following is most likely to increase the supply of corn?
a. The farm worker's union successfully negotiates a pay increase for corn harvest workers. b. New medical reports claim that eating corn bread increases risk of heart attacks. c. The government eliminates subsidies formerly paid to corn farmers. d. Farmers that grow soybeans can also grow corn, and the price of soybeans drops substantially.
As price rises, quantity supplied
A. rises. B. falls. C. remains the same.
According to the monetarists, the ratio of nominal GDP to the money stock should be
a. highly unstable in short run and in long run. b. unstable only during recession. c. unstable only in the long run. d. quite stable in the short run and the long run. e. unstable only if the LM curve shifts.
GDP in 2015 would not include the resale of a house built in 2000.
Answer the following statement true (T) or false (F)