Suppose that Scoobania, which has full employment, can obtain 1 unit of capital goods by sacrificing 2 units of consumer goods domestically but can obtain 1 unit of capital goods from another country by trading 1 unit of consumer goods for it. This
reality illustrates:
A. a rightward (outward) shift of the production possibilities curve.
B. increasing opportunity costs.
C. achieving points beyond the production possibilities curve through international
specialization and trade.
D. productive efficiency.
Answer: C
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The returns to scale of the production function Q = 50 L0.4 K0.2 are
A) 50. B) .6. C) .8. D) 500.6.
What are substitute goods, and how does a change in the price of one substitute good influence the demand for the other?
What will be an ideal response?
Refer to the information provided in Figure 13.10 below to answer the question(s) that follow. 
Figure 13.10 Refer to Figure 13.10. For Armstrong Cable, the profit-maximizing number of subscribers is
A. 800. B. 1,000. C. 2,200. D. 2,500.
For developed countries like the United States, GDP will always exceed GNP
Indicate whether the statement is true or false