If the production possibilities frontier between two goods is a straight line, then the
A) opportunity cost is not a ratio.
B) resources are equally productive in both goods.
C) line does not qualify as a production possibilities frontier because the unattainable production points are too close to the inefficient production points.
D) Both answers A and C are correct.
E) Both answers A and B are correct.
B
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Recently, there has been a sharp reduction in the use of antidumping and countervailing duty laws in the United States
Indicate whether the statement is true or false
If N is the working-age population, Q is the labor force, and U is the number of unemployed, then the unemployment rate is measured as
A) U/N B) U/Q C) U/(N-Q) D) Q/N
The long-run industry supply curve in perfect competition is derived from the
A. short-run industry supply curve which shifts as new firms enter the industry. B. short-run industry supply curve which shifts as old firms exit the industry. C. freedom of firms from sunk costs so that new cost curves become long-run curves. D. All of the reasons listed.
Which of the following happens when a nation's net gains from trade are positive? a. Supporting industries of the traded good are created
b. Supporting industries of the traded good earn lower profits. c. All workers in the trading nation earn lower wages. d. The total surplus enjoyed by the trading nation decreases