If no resources had a comparative advantage in the production of any good, the production possibility curve would be:
A. bowed inward.
B. a downward-sloping straight line.
C. a horizontal line.
D. bowed outward.
Answer: B
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The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If there are no external benefits or external costs, the efficient number of DVDs to produce is ________ a week
A) 1 B) 3 C) 5 D) any number less than 3
Economists would most likely use which of the following to test a hypothesis?
a. using an exact control of variables to determine buying preferences b. observing human behavior in a laboratory setting c. using surveys to ask people about their buying preferences d. observing human behavior in a retail store
Figure 17-13
In , if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, which area represents the United States' net loss as a result of the tariff?
a.
a + b + c + e
b.
b + c + e
c.
b + c
d.
c + e
e.
b + f
The long-run Phillips curve is a vertical line because
A) there is no relationship between the natural unemployment rate and the inflation rate. B) real GDP does not depend on the unemployment rate. C) in the long run, the natural unemployment rate increases when inflation increases. D) the unemployment rate decreases when the inflation rate increases. E) the natural unemployment rate only depends on the inflation rate.