Refer to Scenario 11.1. Suppose all five ranchers know that their land that Mariana needs is worth a total of $2 million. If each rancher agrees to sell his or her parcel of land to Mariana for $600,000, the economic pie will
A) not grow.
B) grow by $1 million.
C) grow by $2 million.
D) shrink by $ million.
B
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In terms of the production possibilities curve, inefficiency is represented by
A. All points inside the curve. B. All points outside the curve. C. All points on the curve. D. A rightward shift of the curve.
The opportunity cost of going to college full time away from home includes
A) the income you could have earned from a full-time job. B) the funds you would have saved if you had not paid the tuition. C) the time you could have spent with parents back home. D) All of the above are correct.
The relative costs of two goods produced by two countries can be determined by comparing the ________ of their ________.
A) slopes; supply curves B) prices; domestic production C) slopes; production possibilities curves D) their absolute efficiencies; production
Firms are the producing units of the economy.
Answer the following statement true (T) or false (F)