In the long run, immigration will shift the sending country's production possibilities frontier inward. This shift will cause:
a. a larger decline in the potential output of the capitalintensive good.
b. a larger decline in the potential output of the labor intensive good.
c. equal declines in the potential output of both the laborintensive and the capitalintensive good.
d. a decline in the potential output of the labor intensive good and an increase in the potential output of the capitalintensive good.
Ans: b. a larger decline in the potential output of the labor intensive good.
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A horizontal long-run industry supply curve occurs under conditions of
a. economies of scale b. diseconomies of scale c. monopoly d. increasing costs e. constant costs
If toast and butter are complements, then which of the following would increase the demand for toast?
a. a decrease in the price of toast b. a decrease in the price of butter c. an increase in the price of butter d. Both a and b are correct.
If the total cost function is TC = 10Q3 - 50Q2 + 1000Q + 500, what is the equation for AFC?
What will be an ideal response?
A characteristic of the market system is:
A. frequent use of price controls. B. low interest rates. C. extensive use of capital goods. D. frequent use of barter.