Ellie and Brendan both produce apple pies and vanilla ice cream. If Ellie's opportunity cost of one apple pie is 1/2 gallon of ice cream and Brendan's opportunity cost of one apple pie is 1/4 gallon of ice cream, Ellie has a comparative advantage in the production of ice cream
a. True
b. False
Indicate whether the statement is true or false
True
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In terms of the production possibilities diagram, the principle of increasing cost simply asserts that the frontier is
A. downward sloping. B. upward sloping. C. bowed inward. D. bowed outward. E. undefined, because no market will exist in this case.
When an economy experiences significant economic growth:
a. a negative relationship exists between output per capita and adult literacy rates. b. an indirect relationship exists between output per capita and adult literacy rates. c. a direct relationship exists between output per capita and adult literacy rates d. no observed relationship exists between output per capita and adult literacy rates.
The use of money and credit controls to change macroeconomic activity is known as:
A. Fiscal policy. B. Monetary policy. C. Supply-side policy. D. Eclectic policy.
Government failure occurs when the government runs a budget deficit.
Answer the following statement true (T) or false (F)