The following figure shows the free-trade production and consumption in Country Y. AB is the production-possibility curve of Country Y. I1 is the community indifference curve of Country Y. Here, Country Y's production-possibility curve indicates that it faces ________ marginal costs of production.
A. decreasing
B. increasing
C. constant
D. fluctuating
Answer: B
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Barriers to trade
A) include government policies such as tariffs and quotas. B) have been falling with technological improvements in transportation and communication. C) have risen since World War II as many countries have imposed higher tariffs. D) Two of the above are true.
The statement, "Corn is not high because a rent is paid, but a rent is paid because corn is high," was made by _________.
Fill in the blank(s) with the appropriate word(s).
Which of the following uses of tax revenues collected by the government leads to increased capital deepening?
A. building roads B. increased foreign aid C. Medicare payments D. Social Security payments
When gross private domestic investment exceeds depreciation, it can be concluded that:
A. Net investment is positive B. Net investment is negative C. The economy is exporting more than it imports D. The economy is importing more than it exports