Which of the following statements is an explanation for the law of increasing opportunity costs?
A. In any economy, the state of technology is changing and resources are variable.
B. Many economic resources are better at producing one product rather than another.
C. The economy is employing all of its available resources.
D. The economy is achieving productive efficiency by producing goods at the least cost.
Answer: B
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Voluntary export restraints
A) have the same effect as an import ban. B) violate the spirit of international trade agreements. C) are illegal under the international trading rules. D) all of the above.
For a government to add to the supply of loanable funds, it must
A) borrow. B) increase its investment demand. C) have a budget deficit. D) raise the real interest rate. E) have a budget surplus.
The Acme Oil Company is a vertically integrated firm. It explores for and extracts crude oil. It also refines the crude oil into gasoline and other products, and sells these products to consumers
The internal price that Acme Oil uses when the crude oil that it extracts is "sold" to one of its refineries is called: A) the shadow price. B) the transfer price. C) the market price. D) the non-market price. E) none of the above
Net domestic product (NDP) is determined by
A. Subtracting depreciation from GDP. B. Adding appreciation to GDP. C. Adding consumption, investment, government expenditures, and net exports. D. Subtracting consumption from GDP.