Whenever productive resources are used to make capital goods
A) society is not producing efficiently.
B) society is giving up current consumption.
C) the production possibilities curve becomes flatter.
D) absolute advantage occurs.
Answer: B
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Which of the following is a factor of production for Cathy's Cookies?
a) Productivity b) Flour c) Cookies d) Money
Profits are part of the
A. total income. B. final consumer goods. C. factor services. D. monetary value of output.
Suppose the demand curve for a good is given by the equation P = 200 - 1/2 Q and the supply curve is given by the equation P = 50 + 1/4 Q, where P represents the price of the good (measured in dollars per unit) and Q represents the quantity of the good (measured in units per week).
(i) Find the equilibrium price and quantity for this market. (ii) Suppose the government imposes a sales tax of $9 per unit on this good. Find the new formula for the demand curve, the new equilibrium quantity, the post-tax price received by suppliers, and the post-tax price paid by demanders. (iii) What fraction of the economic burden of this tax is borne by demanders and what fraction is borne by suppliers?
If velocity is equal to 4, this means that
A) the rate of growth of the money supply is 4. B) an increase in the money supply will lead to an increase in aggregate supply of 4. C) each dollar of the money supply is spent on the average 4 times per year. D) for every 4 dollars of the money supply, nominal GDP will increase by 4.