Macland is specializing and trading with Microland. Where will Macland be on its production possibility frontier?
a. It will be on the PPF.
b. It will be inside the PPF.
c. It will be outside of the PPF.
d. It will be shifting the PPF out.
c. It will be outside of the PPF.
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A natural experiment is an empirical study:
A) in which the predictions of the model are not required to be tested with data. B) in which some process, outside the control of the experimenter, has assigned subjects to control and treatment groups in a random or nearly random way. C) in which the researcher assigns subjects to control and treatment groups to verify a cause-effect relationshi
If savers do not have fixed savings goals, the supply curve of loanable funds will generally be
A. horizontal. B. downward sloping. C. vertical. D. upward sloping.
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Freedonia will now be able to consume a maximum of
a. 30 units of corn and 30 units of wheat. b. 40 units of corn and 30 units of wheat. c. 40 units of corn and 20 units of wheat. d. 10 units of corn and 40 units of wheat.
Whenever a perfectly competitive firm chooses to change its level of output, its marginal revenue
a. increases if MR < ATC and decreases if MR > ATC. b. does not change. c. increases. d. decreases.