The closer we are to the production possibilities frontier and the farther away we are from the origin,
A. the more unemployment there is.
B. the less unemployment there is.
C. the only way to produce more guns will be to give up some butter production.
D. the only way to produce more butter will be to give up some gun production.
B. the less unemployment there is.
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According to your textbook authors, economics is generally
A) an unbiased science. B) a method rather than a body of settled conclusions. C) founded on the observation of data. D) a false and misleading discipline.
A share of common stock is a claim on a corporation's
A) debt. B) liabilities. C) expenses. D) earnings and assets.
Which of the following exemplifies spatial differentiation used by firms under monopolistic competition to differentiate their product in the market?
a. A car dealer offering free after sales service for the first 8 months b. A diamond jeweler offering products online and at retail stores situated at convenient locations c. A cosmetics manufacturer providing free skin care tips to its customers d. A toy manufacturer using bright colors for packaging its products
Suppose labor productivity in France is such that one hour of labor is required to produce one gallon of wine while two hours of labor are required to produce one pound of cheese. Assuming the availability of one million labor hours, draw a constant-cost production-possibility curve for France with the quantity of cheese measured along the vertical axis and the quantity of wine on the horizontal axis. If the free-trade price of wine is two pounds of cheese per gallon, show where, with free trade, France will produce on its production-possibilities curve. Then, draw and use a trade line to illustrate how France can gain from free trade.
What will be an ideal response?