Is increased capital spending the only way for an economy to expand its production possibilities frontier?
a. No, an economy can also expand by invention and innovation.
b. No, an economy can also grow by investment instead of capital spending.
c. Yes, more capital is the only way to expand its production possibilities frontier.
d. Yes, although more capital clearly has a high opportunity cost.
e. Yes, because capital is the only constraining resource that limits growth.
a
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There are ________ Federal Reserve Banks located in different parts of the United States.
A. 10 B. 12 C. 15 D. 50
If there are powerful buyers in a labor market, the use of the supply-and-demand model to analyze labor markets
A. is inappropriate. B. will cause you to believe the wage will be lower than it is. C. is completely accurate. D. will cause you to believe that fewer people will be hired than will be.
Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.
Figure 4.3Refer to Figure 4.3. Retailers will have an excess supply of pencils if the government will not allow retailers to charge less than ________ for a pencil.
A. $0.50 B. $0.45 C. $0.40 D. the equilibrium price
Horizontal differentiation makes products better for some consumers and worse for others.
Answer the following statement true (T) or false (F)