Supply curves are positively-sloped because of
a. inefficient allocation of resources.
b. the law of diminishing returns.
c. economies of scale.
d. self-interested suppliers seeking economic profit.
e. all of the above.
B
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If the number of unemployed workers is 200 million, the number of employed workers is 300 million, and the working-age population is 800 million, what is the labor force participation rate?
A) 12.5% B) 37.5% C) 40% D) 62.5%
If a 10 percent increase in price causes a 5 percent increase in quantity supplied, then supply is
A) elastic. B) inelastic. C) unit elastic. D) infinite.
Countries with more economic freedom during 1980-2010 tended to
a. grow more rapidly, but the 2010 income levels of the freer economies were still lower than those that were less free. b. achieve higher levels of income but the growth rates of the less free economies have been more rapid in recent years. c. achieve both more rapid growth and higher income levels than those that were less free. d. grow less rapidly and the 2010 income levels of the freer economies were lower than those that were less free.
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis Table 1.3, what is gained by producing at point M rather than point N?
A. 2 combs. B. 23 combs. C. 1 comb. D. 21 combs.