The reason the production possibilities curve is bowed outward (concave) is
A) the law of increasing additional cost.
B) that technology is constantly changing.
C) that the number of resources is increasing.
D) that the economy has more capital goods than entrepreneurial effort.
A
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Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?
a. A U.S. electronics company opens and operates a new factory in India. b. A Swiss bank buys bonds issued by a U.S. company. c. A U.S. pension fund buys bonds issued by the Japanese government. d. A French restaurant opens and operates a restaurant in New York.
The most important determinant of the price elasticity of demand for a good is
A) the definition of the market for a good. B) the availability of substitutes for the good. C) the share of the good in the consumer's budget. D) whether the good is a necessity or a luxury.