In deciding to produce more agricultural goods and fewer manufactured goods, a society is addressing the question of
a. where on its production possibilities frontier to operate
b. what production methods should be used to produce goods and services
c. how will output be allocated among the individuals in the society
d. what prices will be charged for goods and services
e. the optimal degree of central planning
A
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Economic growth can be depicted as a
A) shift in the contract curve. B) a change in the dimensions of the Edgeworth box. C) a change in the preference curves of individuals. D) a change in the number of people in the Edgeworth box.
When quantity supplied equals quantity demanded, there is:
a. disequilibrium b. excess quantity supplied. c. a market-clearing price (equilibrium price). d. excess quantity demanded. e. a shortage.
If exports and imports both rose, but exports rose more than imports, a. AD would decrease
b. AD would increase. c. AD would be unaffected. d. AD could either increase or decrease.
With a monopsony in the labor market, a union can often raise wages and the number of workers hired
a. True b. False Indicate whether the statement is true or false