Suppose that, a country with a closed economy opens itself to international trade and becomes a net exporter. In that case, the price of that good will ________ when the economy goes from closed to open for trade.
A. increase
B. first decrease then increase
C. stay the same
D. decrease
Answer: A
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If the production possibilities frontier between two goods is a straight line, then the
A) opportunity cost is not a ratio. B) resources are equally productive in both goods. C) line does not qualify as a production possibilities frontier because the unattainable production points are too close to the inefficient production points. D) Both answers A and C are correct. E) Both answers A and B are correct.
Production inefficiency is more likely to occur when the principal has more information about work performance than the agent does
Indicate whether the statement is true or false
Which of the following would least likely? be, for the typical? student, the opportunity cost of attending a class at? 11:00 a.m.?
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.