The opportunity cost of deficit spending is likely to be low:
a. only when it creates new physical capital
b. only when it creates new human capital.
c. only when it improves existing physical capital.
d. only when it improves existing human capital.
e. when it creates or improves physical or human capital.
e
You might also like to view...
Suppose an oligopoly consists of two firms. Firm A lowers price and Firm B responds by lowering its price by the same amount. If average costs and industry output remain the same, which of the following will occur?
A) The profits of the two firms will increase. B) The profits of the two firms will decrease. C) The profits of the two firms will remain the same. D) Barriers to entry will come tumbling down and new firms will enter.
Which of the following does not determine the position and shape of a society’s production possibilities frontier?
A. Physical resources B. Price level C. Skills and technology D. Past investment in factories and in research