Country 1 produces two goods, A and B. Country 2 produces the same two goods. Currently, country 1 produces 100A and 200B and country 2 produces 300A and 700B. Which of the following statements is true?

What will be an ideal response?


The PPF for country 1 may be closer to the origin (or further to the left) than the PPF for country 2.

Economics

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Suppose the log-linear demand for widgets is found to be

Ln(Q) = 1.5 - 2ln(p) According to this equation, a 10% increase in price will decrease Q by what percentage? What is the price elasticity of demand?

Economics

The willingness of firms to hire labor is represented by the market labor demand curve.

Answer the following statement true (T) or false (F)

Economics

Which of the following is not one of the five fundamental questions that an economy must deal with?

What will be an ideal response?

Economics

In the short run, the expansion path is

A) horizontal. B) vertical. C) diagonal. D) indeterminate.

Economics