Comparative advantage in production of the good measured on the horizontal axis is identified with a straight-line production possibilities frontier that has a slope that is
A. positive.
B. larger in magnitude (or absolute value) and positive.
C. larger in magnitude (or absolute value).
D. smaller in magnitude (or absolute value).
Answer: C
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The effects of a price change are always understated by a partial-equilibrium analysis when compared to a general-equilibrium analysis
Indicate whether the statement is true or false
Refer to the information below. What is the vertical intercept of the demand curve?
A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month. A) 0.50 B) 100,000 C) 0.20 D) 500,000
Most of the U.S. national debt is owed to
a. insurance companies. b. foreign and international institutions. c. private investors. d. Federal Reserve banks and government agencies.
Under the Texas law known as "rule of capture," land owners "get to pump as much of the water under it as they want. . .. 'This means whoever sucks it out first, it's their water'-even if that means there isn't enough left for others." Under this law, pumping large amounts of water:
A. imposes a negative externality on others. B. imposes the free rider effect on others. C. imposes a positive externality on others. D. is a private decision with no effects on others.