With a good on each axis, the production possibilities frontier is downward-sloping, which suggests
A) there is no limit to the amount of each good that can be produced.
B) the production of one good ultimately means sacrificing production of the other.
C) there are no opportunity costs of producing either of the goods.
D) All of the above are true.
B
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Explain the concept of "learning by doing" with respect to infant industry protection
What will be an ideal response?
Which is an example of a negative externality?
A. The higher price you pay when you buy a heavily advertised product. B. An increase in the value of land you own when a nearby development is completed. C. The costs paid by a company to build an automated factory. D. Decreased property values in a neighborhood where several houses are burglarized.
In wealthy countries such as the United States, the price elasticity of the demand for food is ________ it is in poorer countries.
A. greater than B. less than C. the same as D. None of these; it is not possible to make international comparisons of price elasticity.
Which of the following events would result in an increase in the demand for natural gas, causing the demand curve to shift outward?
A. A decrease in the price of electricity B. An increase in the price of furnaces C. An increase in the price of heating oil D. A decrease in the price of natural gas