How will an increase in factor mobility, ceteris paribus, affect an economy's production possibilities curve?
A. Result in a movement along the curve.
B. Shift the curve outward.
C. Result in a movement from outside the curve to a point on the curve.
D. Shift the curve inward.
Answer: B
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Government regulators know that pollution is a problem in Cleveland. However, information on the social cost of this externality is difficult to come by
Which of the following statements best describes how this information problem might manifest itself? a. Well-intentioned regulators monitor a handful of polluting factors and are unable to determine how much they contribute to the problem. b. Well-intentioned regulators decide to shut down the plants and start government production in state-of-the-art factories. c. Well-intentioned regulators impose a collective tax that ends up reducing output beyond the optimal level of output. d. Well-intentioned regulators fail to do anything because they are afraid of doing the wrong thing.
A consumer values a house at $525,000 and a producer values the same house at $485,000 . If the transaction is completed at $510,000 . what amount of tax will result in unconsummated transaction?
a. A tax of $9,000 b. A tax of $14,000 c. A tax of $15,000 d. A tax of $18,000
An economist who studies the sales and profits of a large corporation would be classified as a(n)
a. macroeconomist. b. equity analyst. c. stock broker. d. microeconomist. e. social economist.
Which of the following changes in the price index produces the greatest rate of inflation: 106 to 112, 112 to 118, or 118 to 124?
a. 106 to 112 b. 112 to 120 c. 118 to 126 d. All of these changes produce the same rate of inflation.