What does the slope of the production possibilities curve represent? Explain
What will be an ideal response?
It represents the trade-off between two goods from two points on the PPC. Specifically, as we move from one point to another, in order to produce more of one good, we must trade-off or give up the other good. If the trade-off is constant, then the slope is constant along the PPC and the PPC is a straight line. If the trade-off increases, then the slope is increasing along the PPC and the PPC is bowed outward.
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During the period from 1999 - 2008, federal budget deficits
A. were never calculated. B. fell dramatically. C. increased as a percentage of GDP. D. can be regarded as structural.
An increase in the demand for a resource
a. will cause the price of that resource to fall. b. may be the result of a decrease in the demand for products utilizing this resource. c. will cause the price of the resource to fall by a smaller amount in the short run than in the long run. d. will increase the price of the resource and, thereby, increase the incentive of potential suppliers to provide the resource in the future.
Adam and Barb go to the store to purchase some lottery tickets. Without looking at the price, Adam says "I'll take 10 lottery tickets," and Barb says "I'll take $10 worth of lottery tickets.". What is each person's price elasticity of demand for lottery tickets?
When the dollar depreciates, the prices of imported inputs rise, and the U.S. aggregate supply curve, therefore, shifts inward, pushing up the prices of American-made goods and services.
Answer the following statement true (T) or false (F)