A binding price floor causes a shortage in the market
a. True
b. False
Indicate whether the statement is true or false
False
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Foreign direct investment includes portfolio investment
a. True b. False Indicate whether the statement is true or false
If an economy is operating at a point inside the production possibilities curve, then A) society’s resources are being inefficiently utilized. B) the curve will move to the left. C) society’s resources are being used to produce too many consumer goods. D) economic policy must retard further growth of the economy.
Long-run growth is sustainable if:
A. it can continue in the face of limited natural resources and the impact of growth on the environment. B. people continue to buy enough goods and services. C. energy prices are low. D. environmental concerns are ignored during global recessions.
Exhibit 21-3 Potatoes and wheat output (tons per day) CountryPotatoes Wheat United States4 2 Ireland3 1 In Exhibit 21-3, the United States has an absolute advantage in producing:
A. potatoes. B. wheat. C. both. D. neither.