As an economy's capital stock increases, the economy
A) generally experiences increased unemployment of other resources, such as labor.
B) generally decides to engage in international trade.
C) experiences economic growth.
D) gains an absolute advantage in the production of capital goods.
C
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Which of the following is not a reason for the establishment of intergovernmental transfer programs?
a. Higher level governments want to encourage lower governments to undertake certain programs. b. Taxes are harder to avoid at higher levels of government. c. To provide for national defense resources utilized at the local level. d. Equalization of resources between richer and poorer localities
Suppose the market demand curve for tacos can be expressed as QD = 120 - 3P - Pb, where QD is the quantity of tacos demanded, P is the price of a taco, and Pb is the price of a burrito. What is the relationship between burritos and tacos, from the point of view of consumers?
A) They are independent. B) They are complements. C) They are substitutes. D) Not enough information to answer the question.