The above figure shows the PPF for a country that produces computers and computer factories. Which of the following would most likely shift the PPF from PPF0 in one year to PPF1 in the next?
A) Nothing, because the PPF does not shift.
B) Increase the production of computers from 9 million (at point C) to 11 million (at point B).
C) Decrease the production of computers from 11 million (at point B) to 9 million (at point C) and build 9 new computer factories.
D) Increase consumption of both computers and computer factories.
E) Decrease production of both computers and computer factories by moving into the interior of the PPF.
C
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In the above figure, a price ceiling of $2 would
A) create a shortage. B) create a surplus. C) have no effect. D) cause the demand curve to shift leftward.
Attempts to shield the poor from the worst results of adjustment programs involve
a. expenditure-switching policy b. absorption c. a social safety net d. conditionality e. all of the above
If Sweden exports cell phones to Denmark and Denmark exports butter to Sweden, which of the following would explain this pattern of trade?
A) Sweden has a lower opportunity cost of producing cell phones than Denmark and Denmark has a comparative advantage in producing butter. B) The opportunity cost of producing butter in Denmark is higher than the opportunity cost of producing butter in Sweden. C) Sweden must have an absolute advantage in producing cell phones and Denmark must have an absolute advantage in producing butter. D) Sweden has a higher opportunity cost of producing cell phones than Denmark, and Denmark has a higher opportunity cost of producing butter.
The residential-electricity market is characterized by
A. unregulated perfect competition. B. unregulated natural monopoly. C. regulated (usually natural) monopoly. D. unregulated simple monopoly.