Which of the following is true of the production possibilities curve?
What will be an ideal response?
It assumes a fixed level of technology.
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What most accurately describes the trend in inter-city prices between 1815-1860?
a. Prices of goods in different eastern cities diverged. b. The prices of goods in the Midwest converged towards the prices of goods in the east. c. Prices of goods in the Midwest decreased relative to the prices of goods in the east.
The primary source of power for industrial production in the antebellum period was:
a. coal. b. steam. c. water. d. wood.
If the demand for the finished product increases, the:
a. demand for the resources will increase. b. demand for the resources will decrease. c. marginal factor cost will increase. d. marginal factor cost will decrease. e. MP will increase.
If the Fed reduces inflation by 2 percentage points and this results in a 6 percentage-point increase in unemployment, then the sacrifice ratio is equal to 3
a. True b. False Indicate whether the statement is true or false