Producers are willing to offer greater quantities for sale at higher prices because
What will be an ideal response?
they have the incentive to pay the increasing opportunity cost of resources necessary to attract them from alternative uses
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Some time ago the government of China required many highly skilled technicians and scientists to engage in unskilled agricultural labor in order to develop "proper social attitudes." This policy probably caused China to produce
A) at an inappropriate point along its production possibilities frontier. B) outside its production possibilities frontier with respect to food, but inside with respect to high-technology goods. C) inside its production possibilities frontier with respect to food, but outside with respect to high-technology goods. D) inside its production possibilities frontier.
Refer to the production possibilities frontier in the figure above. Suppose a country is producing at point a. A movement to point ________ means that the country ________
A) d; must give up 20 million capital goods B) e; is not operating efficiently C) d; gives up 10 million consumer goods D) b; is producing at an inefficient point
"An increase in the federal minimum wage causes an increase in unemployment among teenagers" is a:
a. statement of positive economics. b. statement of normative economics. c. testable value judgment. d. fallacy of composition.
In the terminology of macroeconomics, what's the difference between a saver and an investor?