If the production of capital goods is shown along the horizontal axis of a production possibilities curve, and the production of consumer goods is shown along the vertical axis of a production possibilities curve, and the economy desires to have a
rapid rate of economic growth, then the economy should produce at a point A) near the middle of the curve dividing resources equally between the production of consumer and capital goods.
B) at a point near the vertical axis concentrating on the production of consumer goods.
C) at a point near the horizontal axis concentrating on the production of capital goods.
D) at a point inside the curve allowing the economy to adjust rapidly to changes in economic activity.
C
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The value of marginal product equals marginal product
A) multiplied by the quantity of labor. B) divided by the quantity of labor. C) multiplied by the good's market price. D) divided by the good's market price.
If people buy less chewing gum at every price when their incomes fall, then:
a. chewing gum is a normal good. b. the demand for chewing gum is positively sloped. c. demand for chewing gum has increased. d. the price of chewing gum has increased. e. there has been a decrease in population that changed demand.
Oil found underground in Texas is an example of:
a. labor. b. land or a natural resource. c. an entrepreneur. d. human capital. e. capital resource.
Which of the following restrictions implies that private saving and investment are equal for a closed economy?
a. Consumption and private saving are equal. b. The economy's government is running neither a surplus nor a deficit. c. Private saving and public saving are both zero. d. No restriction is necessary; private saving and investment are equal for all closed economies.