Country A and country B both increase their capital stock by one unit. Output in country A increases by 12 while output in country B increases by 15 . Other things the same, diminishing returns implies that country A is
a. richer than Country B. If Country A adds another unit of capital, output will increase by more than 12 units.
b. richer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units.
c. poorer than Country B. If Country A adds another unit of capital, output will increase by more than 12 units.
d. poorer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units.
b
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When you join the local organic food market and then buy produce each month, money is used as
A) only a store of value. B) only a unit of account. C) a medium of exchange and a store of value. D) a medium of exchange and a unit of account. E) a store of value and a unit of account.
The resources used to make goods and services are called ____________ .
a. factors of production. b. the gross national product. c. the production possibilities frontier. d. opportunity costs.