Economic growth can be depicted as
A. an inward shift of the PPF.
B. an outward shift of the PPF.
C. the PPF becoming flatter.
D. the PPF becoming steeper.
Answer: B
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Refer to Figure 17-8. A typical long-run Phillips curve would have the appearance of a curve running through points
A) B and C. B) A and B. C) A and C. D) A, B, and C.
How was South Korea able to use infant industry protection successfully to start its car companies, when many countries experience negative results when they use infant industry protection?
a. The protection has never stopped. b. The protection was so small it had no effect on the car companies. c. The protection had a definite end, whether the infant industry grew or did not grow. d. The protection had a large enough subsidy to make companies’ profitable.
Suppose the actions of the producers of a good impose an external cost which results in the actual market price of $18 and market output of 400 units. How does this outcome compare to the efficient, ideal equilibrium?
a. The efficient price would higher than $18 while the efficient output would be less than 400 units. b. The efficient price would be higher than $18 while the efficient output would be greater than 400 units. c. The efficient price would be lower than $18 while the efficient output would be less than 400 units. d. The efficient price would be lower than $18 while the efficient output would be greater than 400 units.
Exhibit 21-4 Coffee and tea output (pounds per hour) CountryCoffee Tea Brazil10 5 China 8 8 As shown in Exhibit 21-4, compared to Brazil, China has a comparative advantage in the production of:
A. coffee. B. tea. C. both coffee and tea. D. neither coffee nor tea.