The bowed out (concave) shape of the production possibilities curve implies that as production of one good
A) increases, society must forgo increasing amounts of another good.
B) increases, production of other goods increases as well.
C) decreases, production of other goods decreases as well.
D) increases, society must forgo decreasing amounts of another good.
E) increases, society can obtain a free lunch.
A
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A British grocery chain uses previously obtained U.S. dollars to purchase oranges from the United States. This transaction
a. increases British net capital outflow, and increases U.S. net exports. b. increases British net capital outflow, and decreases U.S. net exports. c. decreases British net capital outflow, and increases U.S. net exports. d. decreases British net capital outflow, and decreases U.S. net exports.
The multiplier effect states that there are additional shifts in aggregate demand from fiscal policy, because it
a. reduces investment and thereby increases consumer spending. b. increases the money supply and thereby reduces interest rates. c. increases income and thereby increases consumer spending. d. decreases income and thereby increases consumer spending.
The elasticity of resource demand will be greater the:
A. smaller the portion of the product's total costs accounted for by the resource. B. less the elasticity of demand for the product it is producing. C. easier it is to substitute other resources in production. D. less the elasticity of resource supply.
Suppose the production function for T-shirts can be represented as q = L0.25 K0.75. When K = 1 and q = 2, what is the slope of the isoquant? If there is insufficient information to answer the question, describe what information is needed
What will be an ideal response?