An increase in growth rates will cause:
a. an inward shift of an economy's production possibilities curve
b. an outward shift of an economy's production possibilities curve.
c. a movement from a point on an economy's production possibilities curve to a point inside the curve.
d. an economy's production possibilities curve to slope upward.
b
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The rutabaga market is perfectly competitive and the price of a ton of rutabagas rises. As a result, Rudy, a rutabaga farmer, will
A) decrease his output of rutabagas. B) not change his output of rutabagas because Rudy's firm is a price taker. C) increase his output of rutabagas. D) at first decrease and then increase his output of rutabagas. E) probably change his output of rutabagas, but more information is needed about the change in the marginal revenue of a ton of rutabagas.
Firms in all types of market structures pay attention to current rival firms' behavior
Indicate whether the statement is true or false
When a good ends up over consumed and depleted, we can assume it is a:
A. common resource. B. private good. C. public good. D. scarce good.
Suppose Country X produces only two goods, food and clothing. At the initial free-trade equilibrium, the country produced 40 units of food and 20 units of clothing, and it exports 10 units of food and imports 10 units of clothing. Now suppose technological innovation in Country X leads to a balanced growth while leaving the relative prices of food and clothing unchanged in the international market. Production of food in Country X rises to 50 units and production of clothing rises to 25 units. If consumption of food rises to 42 units, we can most reasonably conclude that the
A. consumption of clothing rises to 32 units. B. the size of Country X's trade triangle has increased. C. consumers in Country X are worse off. D. Country X's willingness to trade declines.