All these factors would shift the supply curve of tobacco, except
a. Bad weather
b. Change in the price of tobacco
c. Changes in the wages of agricultural workers
d. A tax charged on the production of tobacco
b
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All of the following are assumptions of the production possibilities curve EXCEPT
A) resources are fully employed. B) there is a fixed time period. C) there is a fixed level of technology. D) there is a fixed demand for the products.
If the income elasticity of demand for a good is negative, then the good must be an inferior good
a. True b. False Indicate whether the statement is true or false
Which of the following would result in a higher absolute value of the price elasticity of demand for a product?
A) A wide variety of substitutes are available for the good. B) The time period under consideration is short. C) The good is a necessity. D) The expenditure on the good is small relative to one's budget.
Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia. We can conclude that
A) Australia also has an absolute advantage in producing surfboards relative to New Zealand. B) Australia has a lower opportunity cost of producing surfboards relative to New Zealand. C) New Zealand has an absolute disadvantage in producing surfboards relative to Australia. D) Labor costs are higher for surfboard producers in New Zealand than in Australia.