What is a roundabout method of production a it refers

138. What is a roundabout method of production?
a. It refers to an inefficient way of producing goods.
b. It refers to the production of capital goods that are used to enhance productive
capabilities.
c. It refers to hiring more workers and using fewer capital goods.
d. It refers to producing more consumer goods and fewer capital goods.
e. none of the above
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
NATIONAL STAN
DARDS:
United States - BUSPROG: Analytic
LOCAL STANDA
RDS:
United States - OH - Default City - DISC: Markets, market failure, a - DISC:
Markets, market failure, and externalities
KEYWORDS: Bloom's: Application
139. If roundabout methods of production did not ultimately __________, they would probably not be employed.
b
POINTS: 1
DIFFICULTY: Moderate
NATIONAL STAN
DARDS:
United States - BUSPROG: Analytic
LOCAL STANDA United States - OH - Default City - DISC: Markets, market failure, a - DISC:

RDS: Markets, market failure, and externalities
KEYWORDS: Bloom's: Application
140. If the demand for consumption loans rises, this could be the result of
b
POINTS: 1
DIFFICULTY: Moderate
NATIONAL STAN
DARDS:
United States - BUSPROG: Analytic
LOCAL STANDA
RDS:
United States - OH - Default City - DISC: Markets, market failure, a - DISC:
Markets, market failure, and externalities
KEYWORDS: Bloom's: Application
141. If the demand for investment loans rises, this could be the result of
a
POINTS: 1
DIFFICULTY: Moderate
NATIONAL STAN
DARDS:
United States - BUSPROG: Analytic
LOCAL STANDA
RDS:
United States - OH - Default City - DISC: Markets, market failure, a - DISC:
Markets, market failure, and externalities
KEYWORDS: Bloom's: Application
142. A firm knows that it can borrow funds at 7 percent to invest in capital. Whether or not it borrows the funds depends
upon the
a. amount of people's saving.
b. rate of time preference of consumers.
c. return on capital relative to the price of credit.
d. difference between its interest payments and the interest rate.
e. none of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
NATIONAL STAN
DARDS:
United States - BUSPROG: Analytic

LOCAL STANDA
RDS:
United States - OH - Default City - DISC: Markets, market failure, a - DISC:
Markets, market failure, and externalities
KEYWORDS: Bloom's: Application