The United States' comparative advantage over Japan in the production of rock-n-roll music implies that (for a similar quality of music) the
A) opportunity cost of production is less in Japan.
B) absolute cost of production is less in the United States.
C) absolute cost of production is less in Japan.
D) opportunity cost of production is less in the United States.
D
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Prices of microbrewery beer (assume that this is a normal good) have risen steadily in recent years. Over this same period, prices for fermenting vats used in beer making have also risen and consumer incomes have fallen
Which of the following best explains the rising prices of microbrewery beer? A) The supply curve for microbrewery beer has shifted to the left while the demand curve for microbrewery beer has shifted to the right. B) The supply curve for microbrewery beer has shifted to the left more than the demand curve has shifted to the left. C) The demand curve for microbrewery beer has shifted to the left more than the supply curve has shifted to the left. D) The demand curve and the supply curve for microbrewery beer have both shifted to the right.
The long-run aggregate supply when resources are fully employed
A) has no relationship with the production possibilities curve. B) will always be associated with a point outside the production possibilities curve. C) will always be associated with a point on the production possibilities curve. D) is determined by demand.
In the prisoners' dilemma game, self-interest leads
a. each prisoner to confess. b. to a breakdown of any agreement that the prisoners might have made before being questioned. c. to an outcome that is not particularly good for either prisoner. d. All of the above are correct.
Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point directly to the left of it. Assuming that the PPF has not shifted, this could be due to
What will be an ideal response?