In the example of Ireland described in the text, the country's production set shifted outward over time because:
a. of technological advancements which improved its potato cultivation and overall agricultural production.
b. it gained new resources over time which enabled it to specialize and gain comparative advantage in software trade with the U.S. and Europe.
c. of new resources which allowed it to gain absolute advantage over many of its trading partners.
d. of reduction in trade barriers with the European Union.
B
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Ultimately, quotas ________ the ability of foreign countries to buy the domestic country's exports and therefore ________ wealth
A) increase; create B) increase; destroy C) reduce; create D) reduce; destroy
Howard has just smoked a cigarette. If he chooses to smoke a second one:
A. he will experience a drop in total utility. B. he is not acting rationally. C. he will derive less marginal utility from it than his first. D. None of these is true.
Income elasticity of demand is greater than zero for all of the following except
a. restaurant meals b. beer c. owner-occupied housing d. food e. rental housing
Which of the following does not affect the level of autonomous investment?
a. level of technology b. expectations of future growth c. rate of capacity utilization d. rate of interest e. level of income