Which of the following will bring about an inward shift of a production possibilities curve [PPC]?
a. A decrease in the amount of resource employment
b. An increase in the working-age population
c. An increase in unemployment
d. A decrease in the availability of natural resources
e. An increase in the amount of capital available
d
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All of the following are true regarding tacit collusion except which one?
A) It is more likely when barriers to entry are high. B) It is more likely when the price elasticity of demand is large. C) It is an informal, unstated agreement. D) It harms buyers.
According to the graph shown, if this economy were open to free trade, how many units would be exported?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. 35
B. 85
C. 120
D. 75
The economy of Alpha operates according to Okun's law. In Alpha, potential GDP equals $500 billion, actual GDP equals $520 billion, and the natural rate of unemployment is 5 percent. What is the actual rate of unemployment in Alpha?
A. 4 percent B. 7 percent C. 1 percent D. 3 percent
Suppose that an Italian ice cream firm is facing a linear demand curve and that the current price for the Italian ice cream is set at a point where the price elasticity is 0.7. If the firm decreases the product price,
A. the demand becomes more inelastic and total revenue increases. B. the demand becomes more inelastic and total revenue decreases. C. the demand becomes less inelastic and total revenue increases. D. the demand becomes less inelastic and total revenue decreases.