Isoquants that are downward-sloping straight lines imply that the inputs
A) are perfect substitutes.
B) are imperfect substitutes.
C) cannot be used together.
D) must be used together in a certain proportion.
A
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Common property ownership most likely leads to
A) an efficient allocation of resources. B) production at a rate at which price is less than social cost. C) a decrease of externalities. D) an increase in pollution.
If real GDP is increasing more rapidly than population
What will be an ideal response?
Answer the following question based on the data provided in the tables below for two hypothetical nations, Wat and Xat. The nations have the following production possibilities for rice and corn.Wat's Production Possibilities ABCDEFRice7506004503001500Corn050100150200250Xat's Production Possibilities ABCDEFRice2,5002,0001,5001,0005000Corn0100200300400500Which of the following statements about the two nations is correct based on the principle of comparative advantage?
A. Xat has a comparative advantage in the production of corn. B. Xat has a comparative advantage in the production of rice. C. Xat should specialize in the production of corn. D. Wat should specialize in the production of rice.
Use the above figure. A leftward shift in the demand curve, ceteris paribus, would result in
A. a euro appreciation. B. a dollar appreciation. C. increasing the equilibrium quantity of the euro. D. a dollar depreciation.