Explain how firms' production functions and cost curves will change as science and technology advance and as the knowledge of how to organize and manage resources improves.
What will be an ideal response?
Advancements in science and technology and improvements in the knowledge of how to organize and manage resources increase our productive capability. This shifts production functions upward and cost curves downward for firms where these advancements and improvements occur.
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Which bond would someone in a 35% tax bracket choose to buy: a municipal bond with an interest rate of 7% or a corporate bond with an interest rate of 10%?
What will be an ideal response?
Along the per worker production function, as the capital-labor ratio ________, increases in output per worker become progressively ________
A) increases; larger B) increases; smaller C) decreases; larger D) decreases; smaller
Savings accounts are the most liquid of all assets because they can be quickly and easily transferred
a. True b. False Indicate whether the statement is true or false
The economic expansion that began in 1991
a. lasted approximately five years. b. lasted approximately twelve years. c. lasted approximately nine years. d. was the longest expansion in U.S. history. e. was the second longest expansion in U.S. history.