Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, then it would be reasonable to conclude that
a. Georgia has a comparative advantage in producing peaches.
b. total output will be expanded when Georgia allocates more resources to producing oranges and Florida allocates more resources to producing peaches.
c. Florida has a comparative advantage in producing peaches.
d. the opportunity cost of growing oranges is higher in Florida than in Georgia.
a. Georgia has a comparative advantage in producing peaches.
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Refer to the scenario above. Which of the following problems is likely to occur in this market?
A) The fallacy of composition B) Moral hazard C) Adverse selection D) The free-rider problem
Refer to the above figure. The rightward shift of the curve indicates
A) an increase in demand. B) a decrease in demand. C) an increase in quantity demanded. D) a decrease in quantity demanded.
If the U.S. government increased its spending by $100 billion and increased taxes by $100 billion, the net effect on Aggregate Demand would be:
a. Neutral (i.e., no change in aggregate demand). b. To increase aggregate demand. c. To decrease aggregate demand. d. To increase aggregate supply. e. To decrease aggregate supply.
At a price of $4.50/pound, people buy 55 pounds of chocolate cream candy. At a price of $5.50/pound, people buy 45 pounds of chocolate cream candy. What is the arc elasticity of demand for chocolate cream candy in this price range?
a. 1.0 b. 10.0 c. 0.1 d. 0.67 e. none of the above