Consider two countries, Japan and Malaysia. Japan devotes a smaller portion of its production to capital. All other things equal, which of the following statements is most likely true?
A. Malaysia is producing inside its production possibility frontier, whereas Japan is producing at a point on its production possibility frontier.
B. Malaysia's production possibility frontier will shift up and out farther and faster than Japan's.
C. Japan will move up its production possibility curve faster than Malaysia.
D. Japan is a poorer country than Malaysia.
Answer: B
You might also like to view...
When sellers in a perfectly competitive market attempt to maximize their own profits, they:
A) eventually end up minimizing the value of total production. B) earn positive economic profits even in the long run. C) move scarce resources to their highest possible use. D) eventually divert resources toward their lower valued uses.
All of the following describe the conflict between divisions EXCEPT
a. some activities across divisions benefit from coordination b. managers of profit centers care too little about the effects of their decisions on other divisions c. corporate executives reward managers who are able to become more efficient d. corporate executives cannot tell when one divisional manager's decision is appropriate or not
An S-corporation is designed
A. to allow stock sales to other corporate entities. B. to allow for unlimited numbers of shareholders. C. for large new incorporations. D. for small businesses to incorporate.
Profit-maximizing firms want to maximize the difference between
A. marginal revenue and marginal cost. B. total revenue and marginal cost. C. marginal revenue and average cost. D. total revenue and total cost.