51. Economic Cost vs. Accounting Cost
A. Synonymous Terms
B. Economic Cost Includes Both Explicit and Implicit Costs, While Accounting Cost Only Includes Explicit Costs
C. Economic Cost Only Includes Out-of-Pocket Expenses
D. Accounting Cost Includes Both Explicit and Implicit Costs
52. The Multiplier Effect in Keynesian Economics
A. Suggests That Changes in Investment Have No Impact on Aggregate Output
B. Describes the Process by Which an Initial Increase in Spending Leads to a Larger Increase in Aggregate Output
C. Argues That Government Spending Always Crowds Out Private Investment
D. Favors a Balanced Budget Approach
53. Factors Influencing Production Possibility Frontier (PPF)
A. Independent of Resource Allocation
B. Technology, Resource Endowment, and Efficiency
C. Government Regulations Only
D. Ignored in Economic Analysis
54. Effects of a Tariff on Imports
A. Decreases Domestic Prices
B. Increases Domestic Prices
C. Has No Impact on Prices
D. Reduces Domestic Production
55. The Law of Diminishing Marginal Returns
A. States That Total Output Always Increases with Each Additional Input
B. Implies That Adding More Units of a Variable Input to a Fixed Input Eventually Leads to Decreasing Marginal Productivity
C. Applies Only in Perfectly Competitive Markets
D. Advocates for Continuous Expansion of Production
56. Functions of Central Banks
A. Only Currency Issuance
B. Monetary Policy, Currency Issuance, and Financial Stability
C. Fiscal Policy Implementation
D. Market Regulation
57. Economic Rent Concept
A. Represents Payment to Labor
B. Surplus Earnings Above the Minimum Necessary to Keep a Factor of Production in Its Current Use
C. Exclusive to Monopoly Markets
D. Reflects the Cost of Production
58. Absolute Advantage vs. Comparative Advantage
A. Comparative Advantage Implies Lower Opportunity Cost
B. Absolute Advantage Is the Ability to Produce More of a Good with the Same Resources
C. Both Concepts Are Synonymous
D. Comparative Advantage Applies Only in Perfectly Competitive Markets
59. The Solow Growth Model
A. Ignores the Role of Technology
B. Examines the Relationship Between Capital Accumulation, Population Growth, and Technological Progress in Long-Run Economic Growth
C. Proposes That Economic Growth Is Unattainable
D. Emphasizes Short-Term Fluctuations
60. Economic Consequences of Hyperinflation
A. Increases Real Value of Money
B. Destroys Confidence in Currency, Distorts Price Signals, and Hinders Economic Planning
C. Stimulates Long-Term Investment
D. Enhances International Competitiveness
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