In drawing a straight-line production possibilities curve for an economy that produces oil and corn, we assume that resources (for example, the number of labor hours)
a. are fixed
b. increase at a constant rate
c. increase at an increasing rate
d. increase at a decreasing rate
e. are not uniform, such as a variety of skills and quality of work
A
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In trying to determine the "true cost" of some debated proposal,
A) actions have no true cost, only benefits. B) actions will entail different costs for different people. C) the costs of actions must ultimately be the same for everyone. D) there is no difference between costs and benefits.
A monopolistic competitor in long-run equilibrium is like a perfect competitor in that
A) price equals marginal cost. B) price is greater than marginal cost. C) zero economic profits are made. D) both produce at the minimum points of their average total cost curves.
The national debt is
a. the difference between a nation's exports and imports of goods and services. b. the sum of the personal debt of all citizens in the United States. c. the cumulative effect of all past budget deficits and surpluses of the federal government. d. equal to the current size of the budget deficit.
Reflecting the theories of Smith, Ricardo, and Heckscher-Ohlin, free trade permits ______, which allows a country to manufacture and export in those areas where they have a comparative advantage
Fill in the blank(s) with the appropriate word(s).