A farmer can grow soy or sorghum. If the price of soy increases, the opportunity cost of growing sorghum ______, shifting the supply curve of sorghum ______.
Fill in the blank(s) with the appropriate word(s).
Answer: increases; up and to the left
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If the economy in the graph shown were at point B, and the government wished to bring the economy back to its long-run equilibrium, it might:
A. increase government spending.
B. increase income tax.
C. decrease tax credits.
D. All of these would move the economy to its potential GDP from point B.
Which of the following groups of economies appear to have both a political consensus to hold inflation low and the economic tools to do so?
a. middle-income economies b. high-income economies c. low- and middle income economies d. middle- and high-income economies
Recall the Application about the lack of property rights in Peru, and why clear property rights are important for economic growth in developing countries, to answer the following question(s). According to this Application, clear property rights:
A. are important for economic growth in developed nations, but not in developing nations. B. hinder economic growth in developing nations. C. have no impact on the economic growth of developed nations. D. are important for economic growth in developing and developed nations.
An individual in the labor force whose employment was involuntarily terminated is
A. part of the PPI. B. a job loser. C. a job reentrant. D. a job leaver.