According to this Application, in Peru, producing palm oil is very profitable but is a time consuming process. Producing coca paste, an ingredient in cocaine, is not as costly or as time consuming as the production of palm oil
To switch Peruvian farmers from producing an ingredient used for cocaine to producing the profitable and safe palm oil would require
A) improvements in finance and the ability to borrow funds.
B) informal ownership of property.
C) governmental approval.
D) cocaine being declared illegal in Peru.
A
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How does a tax on labor income influence the equilibrium quantity of employment?
What will be an ideal response?
As you move down an isoquant:
A. production remains technically efficient. B. the marginal rate of substitution does not change. C. more of all inputs must be used to keep output constant. D. production remains economically efficient.
Final goods and services refer to ________.
A. goods and services that are unsold and therefore added to inventories B. goods and services purchased by ultimate users, rather than for resale or further processing C. goods and services whose value has been adjusted for changes in the price level D. the excess of U.S. exports over U.S. imports
A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price lower than the original equilibrium b. A market equilibrium price higher than the short run price c. Some firms exiting the market d. All of the above