Suppose that a good that was formerly an import becomes an export, perhaps after an import substitution and export promotion strategy. How is this change reflected in the production possibility frontier?
What will be an ideal response?
The good that was on the import axis, now is found on the export axis. Leaving the goods on the same axes as before, with the import on the y-axis, the ppf becomes more bowed
out toward and further up this axis.
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An outcome is Pareto efficient if:
A) an individual can be made better off without making someone else worse off. B) benefits of the outcome are equally distributed among all the participants. C) no individual can be made better off without making someone else worse off. D) costs of the outcome are equally shared by all the participants.
The twin economic problems of the U.S. health care industry are the
A) rising health care costs and the declining quality of health care services. B) rising health care costs and the rising malpractice insurance costs. C) rising health care costs and the moral hazard problem in health care services. D) declining rate of immunization rates and the rising malpractice insurance costs.
Consider a perfectly competitive market. What happens to profit-maximizing output of the representative firm when entry occurs?
a. output will rise b. output will fall c. output will not change
According to the law of supply, other things equal, when the price of a good or service rises, the quantity supplied increases, but supply does not
a. True b. False Indicate whether the statement is true or false