Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. If Macroland's economy is at Point A, it could produce more consumer goods
A. only with technological improvements.
B. only with additional resources.
C. without sacrificing any capital goods.
D. only by sacrificing some capital goods.
Answer: C
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Refer to Figure 2-4. A movement from ________ is the result of negative technological change in plastic production
A) V to X B) Z to Y C) X to W D) W to Z
Jeffrey spends all of his income on warm-up suits and running shoes, and the price of a warm-up suit is four times the price per pair of shoes. Then, in order to maximize total utility, Jeffrey should
a. buy four times as many warm-up suits as pairs of running shoes b. buy four times as many pairs of running shoes as warm-up suits c. divide his income equally between warm-up suits and running shoes d. buy both items until the marginal utility of a warm-up suit is four times the marginal utility of a pair of running shoes e. buy both items until the marginal utility of a pair of running shoes is four times the marginal utility of a warm-up suit
A Lorenz curve that becomes less bowed out implies:
A. no change in income distribution. B. a change in income distribution toward more equality. C. an increase in poverty. D. a change in income distribution toward more inequality.
The Pacific Pulp Company plans to clearcut 100 acres of land to produce paper pulp which would earn the firm $50,000 in profits. One hundred nearby homeowners realize that this would reduce the value of each of their properties by $1,000. These 100 homeowners
a. face a logistical problem of getting together to offer a bribe to Pacific Pulp. b. would not benefit from offering any side payment to Pacific Pulp not to clearcut. c. have no legal option except to suffer the damages to their property values. d. can costlessly organize to offer Pacific Pulp a side payment not to clearcut.