A country can consume outside its production possibilities curve by trading.
Answer the following statement true (T) or false (F)
True
A country can consume beyond its production possibilities due to the fact that the country can purchase what it needs abroad for a lower cost than it can produce the goods on its own, allowing it to consume more.
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Investment spending includes spending on:
A. consumer durable goods. B. stocks and bonds. C. services. D. new capital goods.
The five competitive forces model was developed by
A) Michael Spence. B) John Nash. C) Porter Smith. D) Michael Porter.
In the simple deposit expansion model, a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed
A) sold $200 in government bonds. B) sold $500 in government bonds. C) purchased $200 in government bonds. D) purchased $500 in government bonds.
Which of the following will not lead to increase in the marginal revenue product?
a. MPP increases without any changes in the price. b. Price of the product increases without any changes in MPP. c. MPP and price of the product increases. d. MPP remains the same and price of the product falls.