Economic growth is:
a. a movement along the production possibilities curve.
b. a change in the combination of the economy's outputs.
c. an outward shift of the production possibilities curve.
d. difficult to determine for any one year.
c
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In the above figure, illustrate the effect on the AS curve from an increase in the money price of a key resource such as oil
What will be an ideal response?
The graph illustrates the market for bottled water. If the producers of bottled water switch to using improved technology, then the
A) supply of bottled water decreases. B) quantity demanded of bottled water increases. C) quantity demanded of bottled water does not change. D) price of bottled water rises. E) supply curve shifts leftward.
If the real wage is above the equilibrium real wage, there would be a ________ of workers and the real wage would ________
A) surplus; decline B) surplus; rise C) shortage; decline D) shortage; rise
Price discrimination is welfare reducing
A) False, price discrimination can increase the coverage of a market thereby increasing welfare. B) False, price discrimination limits the coverage of a market thereby increasing welfare. C) True, price discrimination limits the coverage of a market thereby increasing welfare. D) True, price discrimination can increase the coverage of a market thereby increasing welfare.