The production possibilities curve bows outward because
A. opportunity costs are decreasing as the production of a good increases.
B. resources are of uniform quality.
C. opportunity costs are increasing as the production of a good increases.
D. opportunity costs are fixed as the production of a good increases.
Answer: C
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Sulfur dioxide emissions allowances are available for purchase on the Chicago Mercantile Exchange, and several environmental groups have raised money to purchase these certificates, which they subsequently destroy
What would be the impact of these environmental groups purchasing and then destroying these cap-and-trade certificates on the price of these certificates in the market? A) The price rises. B) The price falls to zero. C) The price falls, but not to zero. D) The price remains unchanged because the certificates are destroyed.
The price elasticity of demand is equal to the ________ in the ________ divided by the ________ in the ________
A) percentage change; price; percentage change; quantity demanded B) change; price; change; quantity demanded C) percentage change; quantity demanded; percentage change; price D) change; quantity demanded; change; price
The United States appears at times to have a totally schizophrenic attitude toward protectionism
The United States was the country that proposed the establishment of the World Trade Organization as early as the late 1940s, and was also the only industrialized country that refused to ratify this at that time. The United States has consistently argued on the side of multinational free trade in GATT Rounds, and yet maintains many protectionist laws such as those which reserve oil shipments from Alaska to U.S. flag carriers. How can you explain this apparent lack of national consistency on this issue?
The research of Gavin Wright (1978) on the antebellum period suggests that
(a) there was no limit on the profitability of the plantation utilizing slave labor. (b) issues with management, communication and discipline limited the profitability of the slave plantation. (c) more than 75 percent of the Southern farms were plantations and utilized slave labor. (d) all of the above.