Which of the following would allow the production possibilities curve for an economy to shift outward?
What will be an ideal response?
a better social organization of economic activity, such as conversion from socialism to
capitalism
b. an increase in the labor force or resource base
c. more investment leading to better technology and more innovation
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XYZ Corporation plans to open a manufacturing plant in China, but the company has not retained any of its yearly profits for this purpose. How will XYZ Corporation likely raise the money to finance its offshore expansion?
a. Selling bonds to institutional investors b. Selling bonds to municipal households c. Issuing Treasury bills to stakeholders d. Encouraging momentum selling of its stock
In the most basic model presented in the text, when aggregate expenditures cross the 45-degree line,
a. saving equals intended investment b. saving is greater than intended investment c. saving is less than intended investment d. saving equals consumption e. saving equals inventories
Since the Federal Reserve was created, it has:
A. averted all financial panics that could have plagued the U.S. economy. B. improved its skill at securing financial stability. C. averted a few financial panics but not most. D. proved to be much better at preventing international panics than domestic ones.
Which of the following statements about venture capital firms is FALSE?
A. Most start-up companies that acquire venture capital eventually turn out to be successes. B. Venture capital firms invest in high-risk, high-potential firms. C. Venture capital firms get most of their capital from pension funds, large university endowments, and other institutions that can take substantial risks with a small portion of their funds. D. Companies that acquire their funds from venture capital firms may initially have trouble acquiring capital from other channels.