If the production possibilities curve in France is bowed out and the curve in Spain is a straight line, then we know that
a. no trade can take place between France and Spain
b. the terms of trade will always be in favor of France
c. the terms of trade will always be in favor of Spain
d. the law of increasing costs apply to France but not to Spain
e. the law of increasing costs apply to Spain but not to France
f. the opportunity costs of producing goods in France are constant
D
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Which of the following is true?
A. The completion of the transcontinental railroad system in the 1880s eventually made the United States the world's first mass market. B. Southern manufacturers were hurt by the high protective tariffs of the 19th century that kept out cheaper British manufactured goods. C. Agricultural inventions such as John Deere's steel plows greatly improved farm productivity. D. All of the choices are true.
The desire for carrots changes as one moves down the demand curve for carrots.
Answer the following statement true (T) or false (F)
Which of the following factors will NOT increase economic development?
A. establishing a system of property rights B. increasing the amount of protectionism C. increasing the amount of education in the population D. creative destruction where old jobs, companies and industries are destroyed
If the marginal propensity to consume equals 0.75, then a $100 increase in disposable income leads to a ________ increase in consumption.
A. $13.33 B. $75 C. $25 D. $133