The law of increasing opportunity cost is based on the idea that
a. wages tend to increase with the level of employment
b. interest rates tend to rise with increasing inflation
c. labor costs for a typical firm are a large and growing proportion of total cost
d. most resources are better suited to producing some goods than others
e. the less of something we produce, the greater is the opportunity cost of producing still more
D
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Studies by the World Bank have underscored the successes of countries that have adopted trade liberalization policies
a. True b. False
The American Recovery and Reinvestment Act of 2009 is a clear example of:
A. Nondiscretionary fiscal policy that made the cyclically-adjusted budget become more positive B. Nondiscretionary fiscal policy that made the cyclically-adjusted budget become more negative C. Discretionary fiscal policy that made the cyclically-adjusted budget become more positive D. Discretionary fiscal policy that made the cyclically-adjusted budget become more negative