Human capital is increased when a firm makes investments that raise workers' productivity.

A. True
B. False
C. Uncertain


C. Uncertain

Economics

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Explain the connection between opportunity cost and the PPF

What will be an ideal response?

Economics

Changing tax regimes can sometimes be difficult and lead to inequities.

A. True B. False C. Uncertain

Economics

A commodity money standard exists when exchange rates are:

a. artificially pegged to the price of oil. b. fixed in terms of gold, thus creating flexible exchange rates between countries. c. fixed in terms of gold, thus creating fixed exchange rates between countries. d. allowed to fluctuate based on the values of different currencies. e. fixed, based on the values of different currencies, in terms of some commodity.

Economics

This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.According to the figure, if MiiTunes charges low prices, The Rock Shop should:

A. enter the market and lose $2 million. B. enter the market and earn $4 million. C. not enter the market and earn $0. D. It cannot be determined what The Rock Shop will do.

Economics