A realistic production possibilities curve:
A. is concave while a simple PPF has increasing opportunity costs.
B. is concave while a simple PPF has constant opportunity costs.
C. is straight lined while a simple PPF has constant opportunity costs.
D. is straight lined while a simple PPF is bowed outward.
Answer: B
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Classical economists believe that:
a. velocity is not constant. b. changes in the money supply affect real GDP. c. the quantity of money explains prices. d. the money supply affects velocity.
Producer surplus is the amount by which total costs from production exceeds variable costs
Indicate whether the statement is true or false
If the United States can produce cotton more efficiently than India, then why is cotton cloth imported to the United States from India?
a. India has a harder-working labor force and better farming equipment. b. Trade is based on comparative advantage, not absolute advantage. c. Cotton production and trade are regulated by long-standing treaties. d. Indian suppliers have an absolute advantage over U.S. suppliers.
Of the 10% of the U.S. work force with advanced (Master's, other professional, and Ph.D.) degrees, the share of those who are foreign born is:
a. more than 50%. b. between 16 and 40%. c. less than 15%. d. less than 5%.