A country which has a higher ratio of capital to other factors of production than does the rest of the world is
A. relatively capital-scarce.
B. said to have a low capital-output ratio.
C. operating at a point inside its production-possibility curve.
D. relatively capital-abundant.
Answer: D
You might also like to view...
Who usually gets the best deal from rent-controlled apartments?
a. the tenants living in them b. the landlords renting them c. the government enabling them d. the tradespeople repairing them
Assume the market is in equilibrium in the graph shown at demand D and supply S2 (at a quantity of 6). If the supply curve shifts to S1, and a new equilibrium is reached (at a quantity of 4), which of the following is true?
A. Total surplus would increase by $7.50.
B. Total surplus would decrease by $16.50.
C. Total surplus would increase by $32.
D. Total surplus would decrease by $14.00.