Why does a nation experience increasing opportunity cost?
A) As the nation moves from a production point within the PPF to one on the PPF, opportunity costs increase.
B) As the nation moves from a production point within the PPF to another point also within the PPF, opportunity costs increase.
C) When the amount of resources increases, the opportunity cost of all goods and services increases.
D) Resources are not equally productive in producing different kinds of goods and services.
E) Because the nation cannot produce at the unattainable production points that lie beyond the PPF.
D
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The main advantage of using panel data over cross sectional data is that it
A) gives you more observations. B) allows you to analyze behavior across time but not across entities. C) allows you to control for some types of omitted variables without actually observing them. D) allows you to look up critical values in the standard normal distribution.
If butter is a substitute for margarine, then an increase in the price of butter would be likely to cause
a. a rightward shift in the demand for margarine b. a leftward shift in the demand for margarine c. the quantity demanded of margarine to increase d. the quantity demanded of margarine to decrease e. a decrease in the price of margarine
Which of the following statements is false?
A) If Mexican restaurant owners provide free chips and salsa to their customers, the quantity demanded of chips and salsa will be greater than if customers had to pay for them. B) If the price of a good falls, then the demand for its complements will increase. C) If the price of a good rises, then the price of its complements will rise. D) If chips and salsa are offered for free to Mexican restaurant customers, then restaurants can charge a higher price for products that are complements to chips and salsa (such as beer).
The premise of Head Start is that
A. early childhood education can make a substantial difference in the future lives of children. B. poor parents aren't very good parents. C. day care for the poor will allow the poor to make a better living. D. B) and C)