When the production possibilities curve is bowed out, resources are:
A. equally well-suited to production of both goods.
B. not being used efficiently.
C. not equally suited to the production of both types of goods.
D. increasing as more of one good is produced.
Answer: C
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The rate of interest written on a contract between a borrower and a lender is the
a. nominal interest rate. b. real interest rate. c. implied interest rate. d. expected interest rate.
In the U.S. government's 1998 suit against the Microsoft Corporation, a central issue was whether Microsoft should be allowed to integrate its Internet browser into its Windows operating system. Microsoft responded that
a. this integration of products is an example of tying, and the U.S. Supreme Court has consistently ruled that tying is a perfectly acceptable and legal business practice. b. this integration of products is an example of resale price maintenance, and the U.S. Supreme Court has consistently ruled that fair trade is a perfectly acceptable and legal business practice. c. putting new features into old products is a natural part of technological practice. d. it would discontinue this integration of products, provided a speedy resolution of the government's case could be reached.
A balanced budget amendment to the Constitution, proposed several times in the 1990s
A. Would prevent recessions. B. Would require the federal budget to be balanced every year. C. Would automatically produce surpluses during recessions and deficits during inflations. D. Would require the federal budget to be balanced over the course of the business cycle.
The marginal product of labor (measured in units of output) of a firm is given by MPN = A(2000 - N)where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $6 per unit and A = 0.002. (a)What will be the demand for labor if the nominal wage is $18?(b)What will be the demand for labor if the nominal wage rises to $21?
What will be an ideal response?