When the opportunity cost of producing carrots increases as more carrots are produced, then:
A. no more carrots will be produced.
B. resources are equally suited to the production of carrots and to other goods.
C. the production possibilities curve is a straight line.
D. the law of increasing opportunity costs is present
Answer: D
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Indicate whether the statement is true or false
A research firm's findings concluded that the demand for movie tickets is price elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue the theatre owners should
a. Reduce the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows b. Increase the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows c. Reduce the ticket prices for the afternoon shows and increase the ticket prices for the evening shows d. Increase the ticket prices for the afternoon shows and increase the ticket prices for the evening shows
When the expenditure schedule is too high, the result is a(n)
a. unemployment surplus. b. inflationary gap. c. recessionary gap. d. budgetary gap.
Answer the next question on the basis of the following information about the hypothetical economy of Asland. All figures are in millions.Unemployed7Total population145Employed95Discouraged workers3The unemployment rate in Asland is
A. 5.0%. B. 6.9%. C. 3.2%. D. 2.5%.