Suppose that an economy produces food and clothing, and a technological innovation occurs that enhances the productivity of resources used in producing both goods. Which of the following would be consistent with this situation?
a. There is a parallel outward shift of the PPF.
b. The PPF rotates outward along the food axis, and remains fixed at the point of maximum clothing production.
c. The PPF rotates outward along the clothing axis, and remains fixed at the point of maximum food production.
d. There is a parallel inward shift of the PPF.
a
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Using the figure above, suppose with no trade Liz and Joe each produce at point A on their respective PPFs. Then, Liz suggests that they specialize and trade. She would produces only smoothies and Joe would produce only salads
Then she would sell 10 smoothies to Joe at a price of 2.5 salads per smoothie. In this scenario, A) Liz gains 10 smoothies and 5 salads, and Joe gains 5 smoothies. B) Liz gains 5 smoothies, and Joe gains 10 smoothies. C) Liz gains 10 smoothies, and Joe loses 5 smoothies. D) Liz gains 5 smoothies and 5 salads, and Joe loses 5 salads. E) Neither of the individuals gains from trade.
The number of part-time workers for economic reasons ________ during recessions and the number of part-time workers for noneconomic reasons ________ during recessions
A) increases; increases B) increases; decreases C) increases; does not change D) does not change; does not change E) decreases; increases
____________ occurs when a person is so heavily involved in one domain (work or family) and may not be psychologically or physically available for the other
a. Involvement balance b. Spillover c. Dominance d. Assimilation
The theory of consumer choice is to demand as the theory of
a. public goods is to supply. b. oligopoly is to supply. c. the competitive firm is to supply. d. comparative advantage is to supply.