What could cause a production possibilities curve to move down and to the left?
(A) Thousands of investors from overseas invest money in a nation's economy.
(B) A baby boom 20 years ago results in a large number of young adults in the population.
(C) An increase in the use of computer technology speeds up production.
(D) A nation loses land after being defeated in a war.
Ans: (D) A nation loses land after being defeated in a war.
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Refer to Scenario 6.1. If both Tasha and Gloria play their dominant strategies, Tasha's net payoff will be ________ and Gloria's net payoff will be ________
A) $15; $12 B) $15; $15 C) $30; $30 D) $12; $12
How does the price system cope with depletable resources?
Which of the following is a true statement?
a. The concept of potential output might be thought of as the maximum sustainable output of the economy under normal circumstances. b. Actual output cannot exceed potential output, even during a boom. c. When the actual rate of unemployment exceeds the natural rate, the actual output of the economy will rise above its potential. d. Potential output represents the absolute maximum level of production.
Suppose there is a public good that has market supply characterized by the equation X = (P/3) - (32/3). Suppose further that market demand for this good can be characterized by the equation X = 25 - P. Find the equilibrium quantity of the public good that will be supplied.
What will be an ideal response?