The law of increasing relative costs is due to
A) taxes.
B) scarcity.
C) the fact that it is more difficult to use resources efficiently the more society produces.
D) the fact that resources not are perfectly adaptable for alternative uses.
D) the fact that resources not are perfectly adaptable for alternative uses.
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Indifference curves that are upward-sloping violate
A) the assumption of transitivity. B) the assumption of completeness. C) the assumption that more is better. D) none of the assumptions.
If the dollar rises in value against other currencies, this will
A. lower our trade deficit. B. make our exports more expensive and our imports cheaper. C. make our exports cheaper and our imports more expensive. D. make both our exports and imports more expensive.
Some nations are increasing the amount of land covered by forests, while others are experiencing rapid deforestation. According to economists, this is largely because:
A. different nations have different ethical views regarding treatment of the environment. B. nations with increasing forest cover have poorly enforced or nonexistent property rights. C. nations with declining forest cover treat forests as private property or strictly regulated government property. D. nations with increasing forest cover treat forests as private property or strictly regulated government property.