Refer to the information provided in Table 2.1 below to answer the following question(s).
Table 2.1?KrystalMarkWriting Poems812Writing TV Commercials24Refer to Table 2.1. Which of the following statements is true?
A. Mark has a comparative advantage in both writing TV commercials and writing poems.
B. Krystal has a comparative advantage in writing TV commercials, and Mark has a comparative advantage in writing poems.
C. Krystal has a comparative advantage in both writing TV commercials and writing poems.
D. Mark has a comparative advantage in writing TV commercials, and Krystal has a comparative advantage in writing poems.
Answer: D
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As we move along a production possibilities curve and acquire larger and larger amounts of one good (e.g., guns), the sacrifices of the alternative good (e.g., butter) become larger and larger. This is an illustration of
A. the law of demand. B. the law of supply. C. decreasing opportunity costs. D. increasing opportunity costs.
When the monopolistically competitive firm shown in the above figure is at its long-run equilibrium, it will be
A) producing the efficient scale of output and is at point A on the ATC curve. B) producing more than the efficient scale of output and is at point C on the ATC curve. C) producing at less than the efficient scale of output and is at a point such as F on the ATC curve. D) producing the efficient scale of output and is at point B on the MC curve.
Which of the following would cause an increase in the supply of wheat?
a. an increase in fertilizer costs b. a decrease in the price of bread c. a decrease in the price of corn d. an increase in land prices e. an expectation that the price of wheat will be higher next period
A reduction in the central bank's inflation target shifts the dynamic aggregate demand curve to the left resulting in:
A. higher current output and higher inflation. B. lower current output and higher inflation. C. higher current output and lower inflation. D. lower current output and lower inflation.