Consider the following combinations of guns and butter that can be produced: 0 guns, 20,000 units of butter; 5,000 guns, 15,000 units of butter; 10,000 guns, 10,000 units of butter; 15,000 guns, 5,000 units of butter; 20,000 guns, 0 units of butter. The PPF between guns and butter is
A) a downward-sloping bowed-out curve.
B) a downward-sloping straight line.
C) an upward-sloping straight line.
D) It is impossible to answer this question without knowing which good would be plotted on the vertical axis.
B
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The difference between an international corporation and a multinational corporation is that the international corporation
a. produces in North America while the multinational corporation produces worldwide b. sells its products in North America while the multinational corporation sells its products worldwide c. sells only products while the multinational corporation sells products and services d. produces only in the home country while the multinational corporation produces in two or more countries e. exports goods and services while the multinational corporation imports goods and services
Given the MPS = 0.40, with no government and no foreign trade, a $10 billion increase in investment will eventually result in an increase in
A. Total spending by $25 billion. B. Consumption by $40 billion. C. Total spending by $2.5 billion. D. Total spending by $15 billion.