Answer the following questions true (T) or false (F)
1. If additional units of a good are produced at an increasing opportunity cost, the production possibilities frontier would be bowed outward (concave).
2. On a diagram of a production possibilities frontier, economic decline (negative growth) is represented by the production possibilities frontier shifting inward.
3. If Sanjaya can shuck more oysters in one hour than Tatiana, then Sanjaya has a comparative advantage in shucking oysters.
1. TRUE
2. TRUE
3. FALSE
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Refer to the scenario above. Which of the following will happen in equilibrium if the car dealer has a reputation of trustworthiness?
A) You will trust him and he will cooperate. B) You will trust him and he will defect. C) You will not trust him. D) You will earn positive consumer surplus.
If the wage rate is $5 per hour, regardless of how many laborers are employed, the wage rate equals the
a. MLC b. MPP c. MR d. MRP e. TLC
Some types of aid limit or reduce potential benefits as a result of ______ , particularly when aid must be spent on goods or services from the donor country.
Fill in the blank(s) with the appropriate word(s).
While developing countries have about ________ of the world's population, they produce less than ________ of the world's output.
A. 5/6; 1/4 B. 2/3; 1/3 C. 7/8; 1/8 D. 6/7; 1/2