When different regions of a country produce different goods,
a. the production possibilities curve shifts to the left.
b. the country becomes worse off.
c. the principle of comparative advantage has been breached.
d. the country becomes better off if the regions are pursuing their comparative advantages.
d. the country becomes better off if the regions are pursuing their comparative advantages.
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The inefficiencies associated with dead capital can
A) lead to increased consumption. B) increase the amount of investment as businesses look for more technologically advanced capital. C) lead to more economic freedom as firms try to get rid of the inefficient capital. D) reduce the rate of return on investment.
The formation of cartels is illegal in all countries of the world
Indicate whether the statement is true or false
Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question. Assume the price of Y is $1 per unit. If the price per unit of good X is $1, the optimal consumption is found at point
A. D. B. E. C. C. D. B
Recall the Application about the cost of using import restrictions to protect jobs in the lumber industry to answer the following question(s).Recall the Application. Import restrictions in the lumber industry in the United States have ________ the supply of lumber and ________ the price of lumber in the United States.
A. increased; increased B. increased; decreased C. decreased; increased D. decreased; decreased