The reason that the production possibilities frontier is usually a bow-shaped curve instead of a straight line is that
a. it makes it easier to illustrate the concepts of scarcity and prices with a bow-shaped curve than it is with a straight line
b. early economists began drawing them in this way and the convention has continued throughout the years
c. output eventually reaches a maximum and then declines
d. resources are not perfectly adaptable to the production of all goods
e. the frontier will shift outward over time
D
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If Robin has an absolute advantage in both gardening and baking when compared to Robert, then
a. Robin cannot benefit by trading with Robert b. Robin can benefit by specializing in gardening if Robert specializes in baking c. Robin can benefit by specializing in baking if Robert specializes in gardening d. Robin and Robert may benefit from trading, but there is insufficient information to determine who should specialize in what e. neither Robin nor Robert can benefit from trading with the other
In the United States from 1981 to 2015, deaths from all of the following declined substantially except
A) cancer. B) kidney disease. C) heart attacks. D) strokes.
Use the above table. If the marginal revenue product is $20, how many workers will the profit maximizing monopsonist hire?
A. 1 B. 2 C. 3 D. 4
A negative demand shock could cause an increase in U.S. exports.
Answer the following statement true (T) or false (F)