As a general rule, what impact does technological progress have on a PPC?
What will be an ideal response?
It shifts the production possibilities curve outward, away from the origin
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A labor union acts as a monopsony seller of labor.
Answer the following statement true (T) or false (F)
Changes in market rents are mainly determined by changes in
A. the demand for the fixed factors. B. the elasticity of supply. C. the supply of fixed factors. D. the intensity of production on the land.
Once voting preferences become more complicated than those assumed by the median-voter theorem:
A. the policies preferred by the average voter become more important. B. the way in which votes are cast becomes important. C. economists cannot analyze voting preferences successfully. D. the politicians stay more extreme in their views.
The Illinois Central Railroad once asked the Illinois Commerce Commission for permission to increase its commuter rates by 20 percent. The railroad argued that declining revenues made this rate increase essential. Opponents of the rate increase contended
that the railroad's revenues would fall because of the rate hike. It can be concluded that: A. both groups felt that the demand was elastic but for different reasons. B. both groups felt that the demand was inelastic but for different reasons. C. the railroad felt that the demand for passenger service was inelastic and opponents of the rate increase felt it was elastic. D. the railroad felt that the demand for passenger service was elastic and opponents of the rate increase felt it was inelastic.