A small Caribbean island-country produces only pineapples and rum. If resources are used efficiently in the economy,
A. it will not be possible to produce more rum without decreasing the production of pineapples.
B. it will be possible to produce more pineapples without decreasing the production of rum.
C. it will be producing on its production possibilities curve.
D. it will not be possible to produce more rum without decreasing the production of pineapples AND it will be producing on its production possibilities curve.
D. it will not be possible to produce more rum without decreasing the production of pineapples AND it will be producing on its production possibilities curve.
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Refer to the table below. If the profit for each unit of paper product is $3.00 and the profit for each unit of lumber is $13.50, what is Big Oaks' marginal cost of producing between points C and D on their production possibilities frontier?
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) $7.50
B) $2.50
C) $3.75
D) $9.25
In which of the following situations would the average standard of living rise?
a. GDP grows at the same rate as population b. GDP grows more slowly than population c. GDP grows faster than population d. GDP per capita remains constant e. GDP grows faster than transfer payments.
Classical economists tend to
A. believe in Keynesian economics. B. reject the equality of savings and investment. C. support Say's law. D. see unemployment as a persistent economic problem.
Property income generally takes the form of all of the following except
A. dividends. B. transfer payments. C. interest. D. profits.