To shift a country's production possibility frontier outward, it is necessary to
What will be an ideal response?
increase the efficiency with which resources are used.
increase the stock of the country's resources.
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You are at a restaurant deciding if you would like some dessert after the meal. The dinner is over so you do not want anything else but the dessert. The opportunity cost of getting the dessert would include
a. Nothing, because you are already there b. Another round of appetizers possibly c. Anything else you could buy d. None of the above
If the market interest rate increases, then
a. the cost of borrowing increases and so saving falls b. the opportunity cost of consuming a good in the future increases and saving, therefore, increases c. the opportunity cost of consuming a good in the future increases and saving, therefore, falls d. the reward for saving diminishes and so present consumption increases e. the reward for saving increases and so saving increases
The idea that higher prices reduce the purchasing power of financial assets and lead to less consumption is known as the:
a. real balances effect. b. interest rate effect. c. foreign purchases effect. d. income effect. e. aggregate demand effect.
Which of the following is determined by dividing the firm's total costs by the quantity of its output?
a. Implicit cost b. Fixed cost c. Variable cost d. Average cost