Refer to the diagram. If society is currently producing 9 units of bicycles and 4 units of computers and it now decides to increase computer output to 6, the cost:
A. will be 4 units of bicycles.
B. will be 2 units of bicycles.
C. will be zero because unemployed resources are available.
D. of doing so cannot be determined from the information given.
A. will be 4 units of bicycles.
You might also like to view...
Something that would cause the long-run aggregate supply curve to shift to the right would be the:
A. unemployment rate decreasing. B. discovery of a new oil reserve. C. inflation rate decreasing. D. The long-run aggregate supply curve is fixed, and does not shift.
A political system that promotes the free and open exchange of ideas:
A. will not have well-defined property rights. B. slows the development of new technologies and products. C. is detrimental to economic growth. D. increases average labor productivity.
Which of the following is NOT a potential problem of using export controls?
A) There is an incentive for other countries to develop production of their own. B) Domestic producers may have less incentive to increase output. C) Prices go up in the country imposing the controls. D) There is more incentive for smuggling.
How did the price change in the long run when DSR shifted to DLR?
a. It fluctuated.
b. It remained constant.
c. It decreased.
d. It increased.