Which of the following will not shift the production possibilities curve outward?
a. an improvement in technology, which increases the efficiency of inputs
b. the discovery of significant oil reserves in Alaska
c. a decrease in capacity utilization of existing factories
d. additions to the stock of physical capital
c
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Applying a uniform markup to each of a firm's products is less profitable than varying the markup based on the elasticity of demand because the latter is able to exploit the sensitivity of quantity demanded to a change price
Indicate whether the statement is true or false
If the graph shown represents Hanna's budget constraint, and the price of hairbands were to decrease, the slope of Hanna's budget constraint would become:
A. steeper, reflecting the fact that hairbands are now relatively less expensive.
B. flatter, reflecting the fact that hairbands are now relatively more expensive.
C. steeper, reflecting the fact that earrings are now relatively less expensive.
D. flatter, reflecting the fact that earrings are now relatively more expensive.
Assume soybeans are produced in a perfectly competitive industry. A soybean farmer is currently maximizing his profits. If the market price of soybeans falls, after the farmer adjusts to the new price, he will be producing __________ bushels of soybeans and his profit will be __________.
A) fewer; the same B) fewer; lower C) more; the same D) the same number of; the same
Refer to the table. For the open economy, the equilibrium GDP and the multiplier are:
Complete the following table and answer the question on the basis of the resulting data. All figures are in billions of dollars.
A. $300 and 2.5.
B. $450 and 5.
C. $400 and 4.
D. $400 and 5.