An increase in the stock of capital:
a. causes a movement from a point on an economy's production possibilities curve to a point inside the curve.
b. causes an economy's production possibilities curve to shift inward over time
c. causes an economy's production possibilities curve to shift outward over time.
d. has no effect on the position of an economy's production possibilities curve over time.
c
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The worst remedy for curing the U.S. trade deficit is to
a. increase U.S. personal saving. b. reduce the budget deficit. c. encourage all nations to lower trade barriers. d. limit imports by imposing tariffs, quotas, and other trade restrictions.
Discuss the role of trust as a critical piece of any principal-agent situation. In particular, what role did trust play in the recent stock market scandals?
What will be an ideal response?
According to the economy in Figure 5.3, net exports
A. Increased the size of GDP from 1970 to 1990. B. Made a positive contribution to GDP from 1990 to 2000. C. Were a positive number from 1970 to 1990. D. Remained constant from 1990 to 2000.
The policy in which industrial production is oriented towards foreign consumers is called
A. import substitution. B. export orientation. C. import promotion. D. export promotion.