Refer to the table above, which gives five points on a nation's PPF. As we increase the production of X,
A) the output of Y increases.
B) unemployment increases.
C) the opportunity cost of each new unit of X increases.
D) the opportunity cost of each new unit of X decreases.
C
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Writing in the 18th century, Adam Smith downplayed technology as a factor contributing to a nation's economic growth
Indicate whether the statement is true or false
The costs of economic growth include all of the following except consumption sacrificed for:
A. acquiring new human capital. B. research and development into new technologies. C. additional hours of leisure. D. physical capital formation.
Figure 4-21
Refer to . The price paid by buyers after the tax is imposed is
a.
$18.
b.
$14.
c.
$12.
d.
$8.
When taxes or subsidies on a particular product are introduced into the general equilibrium model we can be sure that
A. subsidies make the product appear too cheap to its producer. B. we get too much of the subsidized product and too little of the taxed product. C. a more fair allocation of resources is possible. D. taxes make the taxed product appear too expensive to its producer.