Assume Econville’s production possibility frontier divides goods into capital goods and consumer goods and that currently the country is both allocatively and productively efficient. How is this shown on the production possibility frontier?
a. Econville is operating inside its production possibility frontier.
b. Econville is operating outside its production possibility frontier.
c. Econville is operating on the production possibility frontier.
d. It is not possible to show allocative and productive efficiency on the production possibility frontier.
c. Econville is operating on the production possibility frontier.
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Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 60 sliders and 25 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
You have read about the so-called catch-up theory by economic historians, whereby nations that are further behind in per capita income grow faster subsequently. If this is true systematically, then eventually laggards will reach the leader
To put the theory to the test, you collect data on relative (to the United States) per capita income for two years, 1960 and 1990, for 24 OECD countries. You think of these countries as a population you want to describe, rather than a sample from which you want to infer behavior of a larger population. The relevant data for this question is as follows: where X1 and X2 are per capita income relative to the United States in 1960 and 1990 respectively, and Y is the average annual growth rate in X over the 1960-1990 period. Numbers in the last row represent sums of the columns above. (a) Calculate the variance and standard deviation of X1 and X2. For a catch-up effect to be present, what relationship must the two standard deviations show? Is this the case here? (b) Calculate the correlation between Y and . What sign must the correlation coefficient have for there to be evidence of a catch-up effect? Explain. What will be an ideal response?
In 2010 the unemployment rate in Zimbabwe was 95%
a. True b. False
During the expansion phase of a business cycle
a. employment and output are both at a peak b. employment and output are both rising c. employment is falling and output is rising d. unemployment is rising and output is falling e. employment is rising and output is falling