An economy can produce various combinations of food and shelter along a production possibilities curve (PPC). Suppose a technological innovation resulted in a new, higher-yielding crop that generated more bushels of grain for a given set of land, labor, and capital resources. If this innovation did not affect the productivity of shelter production, then which of the following would be true?
a. The production possibilities curve (PPC) will shift outward equally along both axes of the graph.
b. The PPC will not change.
c. The PPC will rotate outward along the food axis, but will not shift on the shelter axis.
d. The PPC will rotate inward along the food axis, but will not shift on the shelter axis.
c
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Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's explicit costs?
A. $64,000 B. $72,000 C. $8,000 D. $12,000
How does a change in demand differ from a change in the quantity demanded? a. A change in demand can only be caused by a change in price, whereas a change in quantity demanded can be caused by anything other than a change in price
b. A change in quantity demanded is a shift of the demand curve, whereas a change in demand is a movement along the demand curve. c. A change in demand can only occur in the long run, whereas a change in quantity demanded is specifically short run. d. A change in demand is a shift of the demand curve, whereas a change in quantity demanded is a movement along the demand curve. e. A change in demand can only occur in the short run, whereas a change in quantity demanded is specifically long run.
In the Santa Rita silver mines in Arizona in 1870, Mexican miners received about $12 per month while "American" miners received $70 . Although the wages of both groups tended to rise over time, the gap persisted until at least 1910 . Mexican and American miners did the same work and were equally productive. Economists call this pay differential
a. prejudicial differentials. b. compensating differentials. c. economic discrimination. d. Lorenz discrimination.
The amount of money held in checking accounts is significantly greater than money in the form of currency
a. True b. False Indicate whether the statement is true or false