A production possibilities frontier (PPF) is bowed outward when
a) the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good.
b) an economy is self-sufficient instead of interdependent and engaged in trade
c) the rate of tradeoff between the two goods being produced is constant
d) the rate of tradeoff between the two goods being produced depends on how much of each good is being produced
Answer: d) the rate of tradeoff between the two goods being produced depends on how much of each good is being produced
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One Sunday afternoon, your mother tells you and your brother that you can quickly make some money by helping her wash dishes. Both of you decide to help her. Once both of you are done with the work, your mother gives you a $20 bill
She also says that you can divide the money between yourself and your brother in any proportion you want, but if your brother does not accept the amount he is being given, she will take all of the money back. a) How much money should you offer your brother if he prefers more money to less? b) How much money should you offer to your brother if you know that your brother prefers fairness to money?
What are the major goals that unions may pursue in labor negotiations? Are these ever in conflict with one another?
What will be an ideal response?
Assume a market price gets set artificially low-that is, it gets set below the equilibrium price. This change means:
A. Some producers drop out of the market, and those left lose some surplus. B. Every consumer gains surplus, due to the lower price now being charged. C. Every producer loses surplus, and it all gets transferred to consumers. D. None of these is true.
Recall the Application about the decrease in the price of wool in the 1990s to answer the following question(s). In the 1990s, the world price of wool decreased by about 30 percent and prices have remained relatively low since then. In 2012, an organization in New Zealand proposed that sheep shearing be added to the Commonwealth Games and the Olympics as a spectator sport in an effort to increase the awareness and the demand for wool.Recall the Application. As the world price of wool decreased, the quantity of wool supplied by individual ranchers would ________, and the quantity supplied in the world market would ________.
A. increase; increase B. increase; decrease C. decrease; decrease D. decrease; increase