An improvement in a country's legal system that enhanced the ability of citizens to protect their property rights and enforce contracts would result in which of the following changes to the country's production possibilities curve?
a. a movement from a point on the curve to a point outside the curve
b. a movement from one point to another point along the curve
c. an outward shift of the curve
d. a movement from a point on the curve to a point inside the curve
C
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What are the four subcategories of investment expenditures?
What will be an ideal response?
Denise owns a plant that produces watch parts in Ohio. Denise noticed that when she hired the last worker, that worker's marginal product exceeded the marginal product of the previous worker
As a result, when the last worker was hired, Denise's average product of labor A) decreased. B) increased. C) did not change. D) perhaps changed, but there is not enough information to determine whether or not it did change. E) equals the marginal product of labor.
Individuals acting with self-interest:
a. always choose the same options as other rational individuals. b. never do voluntary work. c. always try to attain satisfaction at the expense of others. d. choose options that give them the greatest amount of satisfaction. e. have a perfectly elastic demand curve.
Related to the Economics in Practice on page 6: The opportunity cost to Mattel of having its Barbie doll assembled in China is
A. having the Barbie doll assembled in the next best available location. B. the $2 export value the doll carries when it leaves Hong Kong. C. the $8 of its $10 retail value which is captured in the United States. D. the low wages paid to Chinese workers.