In the figure below, AB is the production-possibility curve of Canada. I1 and I2 are two of the community indifference curves of Canada. With free trade, the international price ratio is 0.25 bushel of wheat/bale of cotton, and Canada will export:
A. twenty bushels of wheat.
B. sixty bales of cotton.
C. eighty bushels of wheat.
D. forty bales of cotton.
Answer: A
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Which of the following is an example of a government program that provides in-kind assistance to the poor?
a. Supplemental Security Income (SSI) b. Temporary Assistance for Needy Families (TANF) c. food stamps d. Social Security payments e. unemployment benefits
If the cross elasticity of demand for potato chips and pretzels equals 1.5,
a. potato chips and pretzels must both be luxury goods. b. either potato chips or pretzels must be a luxury good, and both may be luxury goods. c. potato chips and pretzels must be substitutes. d. potato chips and pretzels must be complements.
Which is the most accurate statement?
A. Since 1994 most former welfare recipients have found fairly well paying jobs with full medical benefits. B. Welfare reform has not gotten very many people off of welfare rolls. C. Welfare reform was carried out during a time of great prosperity. D. Welfare reform has at least doubled the number of homeless Americans.
Entrepreneurship is the act of starting new firms and taking the risks that are necessary in business opportunities.
Answer the following statement true (T) or false (F)