Assume a country produces two types of goods: manufactured goods and agricultural goods. When this country experiences economic growth, we know that
A. there will be movement along the curve toward more agricultural goods.
B. the production possibilities curve will shift outward.
C. the production possibilities curve will shift inward.
D. there will be a movement along the curve toward more manufactured goods.
Answer: B
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Consider the country of Inland. In Inland, people's average tax rates decrease with the level of income. Inland has a ________ tax structure
A) progressive B) regressive C) proportional D) flat-rate
Suppose that Megabucks Corporation is earning an economic profit of $4,000 through the sale of a product. If the price of the product is $6 per unit and its ATC is $4 per unit, Megabucks must be producing 8,000 units
a. True b. False Indicate whether the statement is true or false
In order for the standard of living within a country to be enhanced over time, which of the following is essential?
a. The role of the country's government in the economy must become larger. b. The population of the country must increase. c. More domestic natural resources must be discovered and used. d. The level of productivity must increase.
When the percentage change in quantity demanded is numerically less than the percentage change in price, ceteris paribus, demand is:
a) Inelastic. b) Elastic. c) Perfectly elastic. d) Unitary elastic.