If the production possibilities curve is a downward sloping straight line, then
A) resources are highly specialized, making it difficult to use them for alternative uses.
B) technological change has increased.
C) production is efficient only when producing at the mid-point.
D) all resources must be perfectly adaptable for alternative uses.
D
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Conventional wisdom holds that there are __________ in banking
A) economies of scope but not scale B) economies of scale but not scope C) economies of both scope and scale D) neither scope nor scale economies
If the government spending multiplier is 10, then the tax multiplier
A. is -4. B. is -5. C. is -9. D. cannot be determined because the MPS is not given.
Refer to Figure 16.1. If a firm expects that consumer preference for its product will increase in the future, this is best represented by a movement from
A) point A to point C. B) point B to point A. C) point A to point B. D) point C to point A.
Less-developed countries are poor for all of the following reasons except one. Which one?
a. They do not produce many goods and services. b. Labor productivity is low. c. Investment funds tend to flow abroad d. Investment in human capital is very low. e. The labor force is too small.