Figure 34-7
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In Figure 34-7, where AB represents the production possibilities of Pestoland and CD the production possibilities of Pastaland, Pastaland is
A. better at producing pasta and pesto than Pestoland.
B. better at producing pasta, but relatively inefficient in producing pesto.
C. relatively better at producing pasta than pesto.
D. relatively better at producing pesto than pasta.
Answer: D
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A) "invisible hand." B) "other things constant." C) "making all the necessary changes." D) "individual."
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A. there is an incentive to use more equipment. B. the price of equipment should decrease. C. there is an incentive to use less equipment. D. the incentive to use equipment stays the same.
People are not part of the labor force when they
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The demand curve for a normal good shifts leftward if income ________ or the expected future price ________
A) decreases; falls B) decreases; rises C) increases; falls D) increases; rises