Suppose Freeland produces few consumption goods and many investment goods while Liberty Nation produces few investment goods and many consumption goods. Other things equal, you would expect
a. per capita income to grow more rapidly in Liberty Nation
b. population to grow faster in Liberty Nation.
c. the production possibilities curve for Freeland will shift out more rapidly than that of Liberty Nation.
d. that if both countries started with identical production possibilities curves, in twenty years, people in Liberty Nation will be able to produce more consumer goods than people in Freeland.
c
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If the income-expenditure multiplier equals 2.5 and a 1 percent increase in the real interest rate reduces autonomous spending by 200 units, then a 1,000 unit expansionary gap can be eliminated by ________ the real interest rate by ________ percent.
A. increasing; 2.5 B. increasing; 2.0 C. decreasing; 2.0 D. increasing; 4.0
Organizing a successful firm in a market economy has become ________ over the last century
A) politically impossible B) less difficult C) legally impossible D) more difficult
The goals of charitable organizations are inevitably inconsistent with the principles associated with profit maximization
Indicate whether the statement is true or false
If substantial up-front investments in advertising campaigns become essential to a successful market entry, the market is most likely to be:
A. a perfectly competitive market. B. a monopoly. C. a monopolistically competitive market. D. an oligopoly.