The production possibilities curve has:
A. a positive slope that increases as we move along it from left to right.
B. a negative slope that increases as we move along it from left to right.
C. a negative slope that decreases as we move along it from left to right.
D. a negative slope that is constant as we move along it from left to right.
Answer: B
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Other things held constant, higher saving rates lead to
A) increases in the number of hours workers work. B) decreases in real per capita GDP. C) a lower standard of living. D) higher living standards.
A firm that is a price taker faces
A) an elastic supply curve. B) an inelastic supply curve. C) a perfectly elastic demand curve. D) a perfectly inelastic demand curve. E) an elastic but not perfectly elastic demand curve.
The Celler-Kefauver Act is primarily concerned with prohibiting:
a. monopolization. b. unfair business practices. c. predatory pricing. d. anticompetitive mergers.
Assume that maximum feasible hourly productions levels if all resources are utilized in the United States are either 3 yards of fabric or 9 bushels of wheat. Maximum feasible production levels if all resources are utilized in Japan are either 6 yards of
fabric or 12 bushels of wheat. Based on this information A) beneficial trade is absolutely impossible between the two countries. B) the United States will benefit from trading but Japan will not. C) both nations will gain from specialization and trade, with the United States exporting wheat and Japan exporting fabric. D) Japan should specialize in both products.