If producers must receive a higher price to be induced to produce any quantity, we can conclude that
A) supply decreased.
B) demand decreased.
C) both supply and demand increased.
D) demand increased.
Answer: A
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Indicate whether the statement is true or false
Iceland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Lavaland can produce 16 units of food per year or 8 units of clothing. Which of the following is true? a. Iceland has an absolute advantage, but not a comparative advantage in producing food. b. Iceland has a comparative advantage, but not an absolute advantage in producing food. c
Lavaland has both a comparative and absolute advantage in producing clothing. d. Lavaland has a comparative advantage, but not an absolute advantage in producing clothing.
Ceteris paribus which of the following is likely to cause an outward shift of the production possibilities curve?
A.) Investment in telecommunications networks. B.) The deportation of illegal immigrants. C.) An increase in the unemployment rate. D.) A tax increase on factors of production.
Market price is the same thing as equilibrium price.
Answer the following statement true (T) or false (F)