In the production possibilities model, the vertical axis measures ________ and the horizontal axis measures ________
A) people's wants; the quantity of a good or service
B) the quantity of a good or service; time
C) the price of a good or service; the price of another good or service
D) the price of a good or service; the quantity of the good or service
E) the quantity of a good or service; the quantity of another good or service
E
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In using the composite-good convention in an indifference curve diagram, economists
a. compare the prices of market baskets at different points in time. b. divide the world's production into two classes, goods and services. c. divide the world's goods into two classes, high quality goods and low quality goods. d. lump together all goods but one into a single good measured in a single unit, like dollars.
Explain whether it is possible for a country to have an absolute advantage in the production of a product without having a comparative advantage in the production of that product
What will be an ideal response?
A firm suffers an economic loss whenever
a. price exceeds average total cost b. price is less than average total cost c. total revenue exceeds variable cost d. marginal cost is greater than marginal revenue e. marginal cost exceeds average cost
If the short-run Phillips curve were stable, which of the following would be unusual?
a. an increase in government spending and a fall in unemployment b. an increase in inflation and a decrease in output c. a decrease in the inflation rate and a rise in the unemployment rate d. a decrease in the money supply and a rise in the unemployment rate.