A society can produce two goods: green tea and vitamin water. As this society moves down its production possibility frontier, producing more and more units of vitamin water, the opportunity cost of producing vitamin water increases. The society's production possibilities frontier will be
A. negatively sloped and bowed inward.
B. positively sloped and bowed inward.
C. positively sloped and bowed outward.
D. negatively sloped and bowed outward.
Answer: D
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When a country goes to the IMF for foreign currencies to stabilize its own currency, it enages with the IMF in a(n)
a. one-time-only grant from the IMF b. purchase-and-resale (of that currency) agreement c. agreement concerning import controls that is administered jointly by the IMF and the country d. exchange control agreement that is the prerogative of the IMF alone e. agreed upon devaluation
The insurance industry is susceptible to moral hazard problems, but not problems of adverse selection.
Answer the following statement true (T) or false (F)
Corporate income is taxed twice—once in the form of corporate income tax and the second time when the owner must pay income tax on dividends. What are the effects of this double taxation?
What will be an ideal response?
An increase in a consumer's income will increase the Marginal Rate of Transformation
Indicate whether the statement is true or false