In the circular-flow diagram, firms own the factors of production and use them to produce goods and services
a. True
b. False
Indicate whether the statement is true or false
False
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The expansion path sloping __________ means as the firm expands each input is used more and more.
Fill in the blank(s) with the appropriate word(s).
Which of the following is not a factor of production?
A. A bulldozer. B. Six thousand acres of farmland. C. A psychiatrist. D. $100,000 cash.
If the law of increasing opportunity costs is operable, and currently the opportunity cost of producing the 1,000th unit of good X is 0.5Y, then the opportunity cost of producing the 2,001st unit of good is X is most likely to be
What will be an ideal response?
Assume that U.S. producers can manufacture cookies at a lower opportunity cost than Mexican producers. If this is the case
A) it will not be possible for Mexico to have an comparative advantage in the production of any other products. B) Mexico could still have the comparative advantage in cookie production. C) it would still be possible for Mexico to have a comparative advantage in trade for some other products. D) Mexico would have the comparative advantage in all products compared to the United States.